The Boeing Company (NYSE:BA) has announced that it is on a restructuring drive where it plans to rationalize its defense, space and security businesses.
Pentagon’s second largest supplier said it will shut down some facilities in California and will consolidate many of its business units. The company wants to cut costs of an additional $1.6 billion by 2015, in addition to the $2.2 billion cuts already achieved since 2010.
Boeing will slash 10% more executive jobs including those at the vice-president and directorial level, taking the overall job cuts since 2010 to 30 percent.
"We are raising the bar higher because our market challenges and opportunities require it, and our customers' needs demand it," said Dennis Muilenburg, CEO of Boeing Defense, Space & Security, in a memo to employees.
The U.S. government has cut spending on defense, and weapon manufacturers are cutting costs to preserve their margins.
Meanwhile shares of mobile phone software maker Vringo, Inc.(NYSEAMEX:VRNG), cracked 10 percent on Wednesday, extending its 7% fall in Tuesday’s session after the company announced that the jury had asked a few companies to pay $30 million to Vringo for infringing upon its patents.
The jury appointed by the court upheld the validity of Vringo’s patents and has ordered AOL, IAC Search and Media and Gannett to pay $15.8 million, $7.9 million, $6.6 million and $4322 respectively.
Vringo had acquired Innovate/Protect (I/P), a company which specializes in monetizing intellectual property, in March. Before the acquisition, I/P had filed a lawsuit against a string of companies for infringing on its patents. The lawsuit against Google Inc involves 2 patents that I/P had purchased from Lycos.
Shares of VRNG are up 5% in pre-open session.