Boeing to Consolidate Defense Systems Group

The Boeing Co. announced last week it would reorganize its defense business in order to cut costs, improve productivity and be better positioned for anticipated cuts in Pentagon spending. Boeing said layoffs are likely at the St. Louis, MO-based Integrated Defense Systems, which specializes in defense communication systems, but did not offer details. In an interview with the St. Louis Post Dispatch, Jim Albaugh, the division's president and CEO, said the business would be recast it into three major business groups instead of seven. The consolidation will take place in the next few weeks. According to the newspaper report, Integrated Defense Systems has the biggest backlog of unfilled customer orders among U.S. defense contractors, and has grown 50% since its formation in July 2002.