What does the future hold for BAE Systems?

A revised organisational structure will create strengthened air, maritime and land sectors and remove management layers including the Platforms & Services (P&S) UK and P&S International operating groups.

Technology remains a key priority for the group, and a new Chief Technology Officer role will join the Executive Committee to focus on investments, developments and exploitation of technologies across our products, services and operations.

The proposed restructuring of the company's Applied Intelligence cyber security business will drive continued growth from a more targeted portfolio of products and services focussed on providing cyber security, intelligence and financial crime prevention capabilities to government and commercial customers in priority geographic markets.

Separately, the company has announced proposed reductions to its military air and information and maritime services workforce to align capacity more closely with current and expected orders.

Charles Woodburn, Chief Executive at BAE Systems said: “BAE Systems is a world leader in technology, advanced manufacturing and engineering and our diverse portfolio provides a strong platform for future growth. The organisational changes we are announcing today accelerate our evolution to a more streamlined, de-layered organisation, with a sharper competitive edge and a renewed focus on technology. These actions will further strengthen our company as we deliver our strategy in a changing environment.

“Separately, we are also announcing actions at some of our UK sites to align our workforce capacity more closely with near-term demand and enhance our competitive position to secure new business. Those actions are necessary and the right thing to do for our company, but unfortunately include proposed redundancies at a number of operations. I recognise this will be difficult news for some of our employees and we are committed to do everything we can to support those affected.”

New organisational structure
The revised organisational structure of the Group’s operations (which excludes US-managed subsidiary BAE Systems) will take effect from 1st January 2018.

Air: The new air sector will bring together the company's international capabilities and expertise to respond to customer requirements, and compete more effectively for international export and collaboration opportunities. The air sector will combine the current Military Air & Information, Saudi Arabia, Australia and Oman operations, as well as BAE Systems’ interest in the MBDA joint venture.

Maritime: A strengthened Maritime sector, comprising the Naval Ships, Submarines and Maritime Services businesses currently managed within P&S UK, will report directly to the Chief Executive.

Land: The Land (UK) business currently managed within P&S UK will report directly to the Chief Executive.

Applied Intelligence: A planned revised operating model will deliver a more targeted portfolio of products, services and geographic markets, focused on customers within three core business units: Government; Financial Services; and Technology and Commercial. The ongoing restructuring of BAE Systems Applied Intelligence business includes the proposed reduction of up to 150 roles.

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