Boeing deepens strategy cuts as operations take center-stage -sources

Boeing has embarked on deeper-than-expected cuts in its strategy ranks, halving the number of planners working within key divisions as it refocuses energies on tackling industrial pressures, people familiar with the matter said. The move is the latest evidence of renewed industrial priorities after Boeing on Monday named Stephanie Pope to the new role of COO, putting the 51-year-old Global Services head in line to succeed Dave Calhoun as CEO. Boeing has been grappling with supply disruption at a time when it is saddled with almost $40b of debt stemming from the COVID-19 travel slump and an earlier 737 MAX safety crisis. But some critics worry the increased operational focus is diverting attention from Boeing's long-term future at a crucial stage for the industry, with redundancy notices due to go out to affected strategists this week, according to the sources. In November, Boeing said Marc Allen, who had once been seen as a future CEO, would step down as chief strategy officer with part of his planning team redeployed to divisions. In a Nov. 16 memo, Calhoun said this involved "enabling and empowering our business units," with strategists "directly joining the business units they support." However, sources said those units were facing cuts of at least 50% in the number of strategists who work day to day inside Boeing Global Services and Stan Deal's Boeing Commercial Airplanes. The total number of employees affected was unknown.<br/>