by Valerie Insinna and Tim Hepher

(Reuters) – Boeing plans larger-than-expected cuts to its strategy staff, to halve the number of strategists employed in major hubs, amid a reorganization intended to better respond to industrial pressures, we learned from people familiar with the matter.

This decision confirms the reorientation of the American aircraft manufacturer, which on Monday appointed Stephanie Pope as director of operations, placing the 51-year-old woman in pole position to succeed Dave Calhoun as general manager of the group.

Boeing is facing disruptions in its supply chains, while it already has to pay off nearly $40 billion in debt accumulated due to the dip caused by the COVID-19 crisis and the grounding of its 737s. MAX for safety reasons.

According to the sources, some worry that Boeing’s refocusing on its operational activities is preventing it from thinking about the long term at a crucial time for the industry.

Boeing announced last month that Marc Allen, once considered the future CEO, was leaving his position as strategic director and that part of his team would be redeployed in the group’s divisions.

Dave Calhoun wrote in a Nov. 16 memo that the decision would give more power to the planemaker’s divisions, with strategists “directly integrating into the units they support.”

However, the sources said that these units would see the disappearance of at least 50% of the strategist positions working on a daily basis within the Global Services and Commercial Devices divisions. It is not known how many employees are affected by the decision.

Symbolizing the acceleration of job cuts, some strategists have been asked not to return to the office when they receive 60 days’ notice of their job cuts, the sources said, specifying that letters should be transmitted this week.

Within the Defense division, the situation is evolving more slowly, with initially a merger between the strategy division and the business development division, but “cuts” of at least 50% are also expected, the sources said. .

Boeing confirmed the reshuffle within the Defense division but declined to comment on the number of job cuts across the group. According to sources, the aircraft manufacturer employs a total of around 200 strategists.

(Reporting by Tim Hepher in Paris and Valerie Insinna in Washington; Jean Terzian)

Copyright © 2023 Thomson Reuters