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BAE Makes Major Changes to Reorganize Business Strategy

The U.S. division of BAE Systems will close one of its two headquarters to reorganize its  delivery strategy following a recent global market and customer review.

In an internal memo, BAE President and CEO Linda Hudson wrote: “From this review, it is clear that we must make changes to our organization if we are to continue our successful journey going forward. As a result, we are realigning BAE Systems, Inc. to better deliver our strategy in an increasingly cost-conscious marketplace.”

The U.S. division of the company is composed of land and armaments and electronics, intelligence and support divisions. Its headquarters will be closed July 1.

A change in leadership and management will also take place. Hudson, CEO of Land and Armaments Bob Murphy, and five presidents of products and services sectors will make up the new leadership team.

“Through these changes, we will be better aligned to our key markets, be more competitive in a challenging environment by reducing cost, and be more agile to effectively respond to customer needs,” said Hudson.

BAE will asses their businesses and develop a strategy to organize their headquarters to become geared towards a changing “land business.” Hudson expressed her hope in the memo that this reorganization will provide for company growth within the emerging markets.

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