BAE Systems U.S. operations to cut the number of its business sectors from four to three

ARLINGTON, Va., 22 May 2014. BAE Systems Inc. in Arlington, Va., the U.S. subsidiary of BAE Systems plc, will reduce its number of primary business sectors from four to three this July amid a continuing downturn in U.S. defense spending and other difficulties in the military market.

Executives of the prime defense contractor will eliminate the company's Support Solutions segment in Washington "to remain agile and best optimize its organizational effectiveness and efficiency," company officials say.

BAE Systems Support Solutions focuses on space and missile defense; radar tracking systems; optical tracking systems; ship repair; and military avionics.

Related: BAE Systems to consolidate Electronic Solutions and Platform Solutions sectors in customer-focused reorganization

The reorganization, effective on 1 July 2014, will fold Support Solutions activities into the three remaining BAE Systems business sectors: Electronic Systems in Nashua, N.H.; Land & Armaments in Arlington, Va.; and Intelligence & Security in Arlington, Va.

Just three years ago BAE Systems consolidated its Electronic Solutions Sector in Nashua, N.H., and the BAE Systems Platform Solutions Sector in Johnson City, N.Y., into the new Electronic Systems Sector based in Nashua, N.H.

“As our markets evolve due to shifting customer priorities and defense budget pressures, we must adapt to ensure our continued ability to compete, perform, and deliver in the business environment of tomorrow,” says Jerry DeMuro, president and CEO of BAE Systems Inc.

Related: BAE Systems names industry team to help DARPA unify imaging and military intelligence sensors

“These organizational changes will enable a more integrated approach to the strategic development of our portfolio as we seek to protect and expand our core businesses, pursue new opportunities, and reduce infrastructure costs,” DeMuro says.

This announced organizational consolidation follows a number of other actions that have been taken in recent years to ensure BAE Systems remains competitive, company officials say.

For more information contact BAE Systems online at www.baesystems.com.


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