By Marcus Weisgerber, Global Business Editor(January 26, 2023) -- Raytheon Technologies will combine its missiles and defense division and intelligence and space division into a single business unit, the company announced Tuesday.
The move comes as the company looks for ways to cut costs amid high inflation and supply chain disruptions that executives expect to ease later this year.
“This will better align us with our customers’ needs and allow us to better collaborate on next-generation technology,” CEO Greg Hayes said Tuesday during the company’s quarterly earnings call.
The reorganization will create three divisions at Raytheon Technologies: Collins Aerospace, Pratt & Whitney, and Raytheon.
Raytheon also named COO Christopher Calio its president effective March 1. Calio is overseeing the merging of the missiles and defense and intelligence and space divisions.
“I've been focused with our team on driving operational performance and program execution, as well as identifying ways to improve our cost position and to ensure alignment between our investments and our strategic priorities,” Calio said.
Calio said the combination of the two business units will position the company to better compete for military projects to connect all weapons on the battlefield.
Roy Azevedo, the president of Raytheon Intel & Space, will retire and serve as an advisor to Calio during the reorganization. Wes Kremer, the president of Raytheon Missiles and Defense, was not mentioned in the announcement or by any executives on the call.
Raytheon Technologies was created in April 2020 through the merger of Raytheon and United Technologies. That followed UTC buying Rockwell Collins in 2018.