WALTHAM, Mass. (AP) — Defense contractor Raytheon Co. said Monday that it is reorganizing its business and plans to cut 200 jobs.
The Massachusetts-based company said it is consolidating some of its business units to increase productivity and better meet customer's needs. Raytheon said the reorganization will result in annual savings of approximately $85 million.
The company declined to say which locations or operations would see job cuts. Raytheon has roughly 68,000 employees worldwide.
The company said the consolidation is not expected to have any effect on the company's 2013 financial outlook.
"Our new structure will help us enhance productivity, agility and affordability in a challenging defense and aerospace market environment," William Swanson, Raytheon's Chairman and CEO, said in a statement. "We will remain focused on success for our global customers while returning value to our shareholders."
The company also said that it has elected Thomas Kennedy to the new position of executive vice president and chief operating officer. Kennedy previously served as vice president of Raytheon and president of its integrated defense systems business. He will lead the company's consolidation efforts and will manage day-to-day operating activities, along with contributing to the company's long-range planning. Daniel Crowley, Raytheon's vice president and president, will succeed Kennedy as president the integrated defense systems business.
Lynn Dugle, another Raytheon vice president and president, has been named president of the newly formed Raytheon intelligence, information and services business. And John Harris II, formerly president of Raytheon Technical Services Company LLC, has been named vice president and general manager of the new business unit, reporting to Dugle.
The company reported in January that its fourth-quarter net income fell 14 percent as it suffered from lackluster sales in an era of military cost-cutting.
Shares of Raytheon fell 41 cents to $56.63, in line with broader market movement.