Raytheon streamlines divisions

Six will be merged into four; Missile Systems to expand, take control of British operations
2013-03-26T00:00:00Z 2014-07-02T12:18:02Z Raytheon streamlines divisionsDavid Wichner Arizona Daily Star Arizona Daily Star

Tucson-based Raytheon Missile Systems will add a combat-sensors division and responsibility for Raytheon's United Kingdom business, under a consolidation plan announced Monday by parent Raytheon Co.

Massachusetts-based Raytheon said it is merging its six business units into four, to increase productivity and better meet customers' needs.

"Our new structure will help us enhance productivity, agility and affordability in a challenging defense and aerospace market environment," Raytheon Co. Chairman and CEO William H. Swanson said in prepared remarks.

The company said 200 jobs will be cut under the restructuring plan, which will go into effect April 1, but details of specific cuts weren't disclosed. The plan is expected to save the company $85 million annually.

Raytheon has about 68,000 employees worldwide, while Raytheon Missile Systems is Southern Arizona's largest private employer with about 10,500 local employees.

Under the plan, the new Raytheon Co. structure will consist of four business units.

• A new unit, Raytheon Intelligence, Information and Services, will result from the combination of Raytheon's Garland, Texas-based Intelligence and Information Systems business and its Dulles, Va.-based Technical Services unit. The businesses had combined sales of about $5.5 billion in 2012.

• The other existing business units - Missile Systems, Tewksbury, Mass.-based Raytheon Integrated Defense Systems and El Segundo, Calif.-based Raytheon Space and Airborne Systems - each will be expanded by the absorption of Raytheon's McKinney, Texas-based Network Centric Systems business.

Missile Systems will add the Combat & Sensor Systems division of Network Centric Systems, as well as adding responsibility for Raytheon UK.

Missile Systems President Taylor Lawrence will lead the combined business, which had sales of about $6.5 billion last year, the company said.

Raytheon Co. spokesman Jon Kasle said no further information was available regarding the impact on jobs or operations at Missile Systems. For now, operations will continue as they stand under the new reporting structure that becomes effective April 1, Kasle said.

Raytheon's Combat & Sensing Systems division employs more than 1,900 people in operations in Indiana, California, Virginia and several locations in north Texas, according to a company overview.

The division develops and makes targeting, weapons fire-control, reconnaissance and surveillance thermal imaging systems, such as night-vision equipment, as well as electro-optical and infrared combat sight and thermal imaging systems, advanced radio communications systems and networked sensing and battlefield-information systems.

Raytheon UK, based in Glenrothes, Scotland, specializes in defense and security electronics and is a prime contractor to the UK Defense Ministry. The company, which recently opened a foundry to make silicon carbide for advanced electronics, employs more than 500 people in research, development and manufacturing across the U.K.

Raytheon also said that it has elected Thomas Kennedy, formerly vice president of Raytheon and president of its Integrated Defense Systems unit, to the new position of executive vice president and chief operating officer.

Contact Assistant Business Editor David Wichner at dwichner@azstarnet.com or 573-4181.

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