Boeing Shrinks Strategic Planning Team, Eyeing Operational Efficiency: Report

Boeing Co BA is reportedly downsizing its strategic planning team amid a focus on industrial challenges.

BA is reducing its number of planners functioning within key divisions by half in key divisions as it refocuses energies on handling industrial pressures, reported Reuters, citing people familiar with the matter.

Boeing recently named Stephanie Pope as Chief Operating Officer, potentially lining her up to succeed CEO Dave Calhoun, signifying a shift towards enhanced operational efficiency.

Boeing faces supply chain disruptions and a significant $40 billion debt stemming from the COVID-19 impact and the 737 MAX crisis, prompting a strategic realignment, mentioned the report.

Despite this operational shift, there are concerns that Boeing may need to pay attention to its long-term future, especially in the innovation department. The report noted that the company is expected to issue redundancy notices to the impacted strategists soon.

Also Read: Boeing's Chinese Comeback: Aviation Giant Invited To Expand In China Amid 737 Max Sales Talks

The report further indicated at least a 50% reduction in strategists at Boeing Global Services and Commercial Airplanes, though the total affected headcount remains unclear.

Reuters stated that Boeing confirmed an internal Defense combination but didn't disclose the extent of company-wide job cuts.

The report quoted a spokesperson stating, "We're aligning strategy teams with their business units," highlighting ongoing efforts to streamline the company and focus resources.

Price Action: BA shares are trading higher by 0.77% at $250 on the last check Tuesday.

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