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Boeing downsizes and restructures military aircraft unit

Amidst slower US defence spending growth, Boeing will slash executive payroll by 10% and consolidate six divisions into four within the Boeing Military Aircraft (BMA) business.

The restructuring, effective on 1 October, eliminates the rotorcraft division as a standalone unit and merges the unmanned and missiles groups into the same unit, Boeing says.

Four new divisions will support the business unit's "progression from a product-based business to a capaibilities-based business," BMA president Chris Chadwick says in a statement. "It is consistent with initiatives under way throughout the entire Boeing defence business that will allow us to remain competitive and grow."

Shelley Lavender has been appointed head of the Global Strike division, which adds attack helicopters to the company's fighter business. Jean Chamberlin will lead the mobility business unit, with cargo helicopters added to airlift and tanker products. Bob Feldmann will assume control of the surveillance and engagement division. Meanwhile, Debbie Rub will take charge of the consolidated missiles and unmanned airborne systems divisions.

Phil Dunford, formerly head of rotorcraft systems, will assume the new role of "operating executive" on the BMA leadership team, with a portfolio including engineering, supplier management and production operations. 

After slashing executives ranks by 10%, BMA also may cut staff across all levels of the organisation in the "coming months".

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