30 Aug 02. Raytheon Co. (NYSE:RTN – News) realigned its government and defense business structure to focus on customer satisfaction and growth.
The defense contractor said it formed seven business by combining units of the former electronics systems and command, control, communication and information systems, or C3I, operations. Raytheon unveiled plans for the new organizational structure in July, saying the moves would eliminate a layer of management and allow it to operate with greater “agility and speed,” increase productivity and cut costs.
A company spokesman said the restructuring will result in some job reductions, but the company won’t have specific numbers until later in September. He said the job cuts likely won’t be significant. Heads of each of the seven business units will report to Raytheon President William H. Swanson, who assumed that newly created post in mid-July as part of the new organizational structure. Raytheon’s government and defense business structure will consist of the
following business units:
-Integrated Defense Systems, headed by Ed Franklin, will be based in Tewksbury, Mass., and have 10,000 employees and expected annual revenue of about $2.2bn.
-Intelligence and Information Systems, led by Mike Keebaugh, will be based in Garland, Texas, and have 8,000 employees and expected annual revenue of about $2bn.
Missile Systems, headed by Louise Francesconi, will be based in Tucson, Ariz., and have 11,000 employees and expected annual revenue of about $3bn.
-Network Centric Systems, led by Colin Schottlaender, will have its headquarters in McKinney, Texas, and have 11,000 employees and expected annual revenue of about $2.7bn.
-Space and Airborne Systems, headed by Jack Kelble, will be based in El Segundo, Calif., and have 9,300 employees and expected annual revenue of about $ 2.9bn.
-Raytheon Financial Services Co., led by Bryan Even, will be based in Reston, Va., and have 15,000 employees and expected annual revenue of about $2.1bn.
-Homeland Security, headed by Hugo Poza, will have its headquarters in Washington.
Each of the business presidents and deputies will also be vice presidents of Raytheon and members of the company’s leadership team. Raytheon Aircraft Co., Commercial Electronics and Raytheon Commercial Ventures Inc. will continue to report to Chairman and Chief Executive Daniel P. Burnham. The company plans to begin reporting financial results in the new organizational structure in 2003.