Raytheon Trims Operating Divisions from Six to Four

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WASHINGTON — Defense contractor Raytheon of Waltham, Mass., announced a wide-reaching reorganization March 25, one that draws a new hierarchy for many of its space-related and missile defense products and reduces the number of corporate divisions from six to four.

Structurally, the reorganization combines Raytheon’s Intelligence and Information Systems division, a major provider of satellite ground systems, with its Technical Services business, the company said in a press release. The combined operations will form a new division called Intelligence, Information and Services.

Raytheon also will disband its Network Centric Systems division, spreading that business across three other operating units: Integrated Defense Systems; Missile Systems; and Space and Airborne Systems.

The changes will save the company approximately $85 million and lead to 200 workers losing their jobs, Raytheon announced in the press release. Raytheon has about 71,000 employees worldwide.

“Our new structure will help us enhance productivity, agility and affordability in a challenging defense and aerospace market environment,” William H. Swanson, Raytheon’s chairman and chief executive, said in a statement.

Thomas Kennedy has been elected to the new position of Raytheon executive vice president and chief operating officer. Kennedy previously served as Raytheon vice president and president of Raytheon Integrated Defense Systems.

Daniel Crowley will take over as president of Raytheon Integrated Defense Systems. Lynn Dougle will serve as president of Raytheon Intelligence, Information and Services. Dougle is the current president of Intelligence and Information Systems, which provides ground stations and software for various satellite programs including GPS.

John Harris, former president of Raytheon Technical Services, will serve as vice president and general manager of the newly created division.

Taylor Lawrence will continue as president of Raytheon Missile Systems in Tuscon, Ariz. That business includes a number of missile defense programs, such as the Standard Missile-3 interceptor and Exoatmospheric Kill Vehicle.

Richard Yuse will continue as president of Raytheon Space and Airborne Systems business in El Segundo, Calif., a provider of sensors for satellites and aircraft.

The changes will take effect April 1.