(Photo: REUTERS/Jason Redmond)
Boeing announced that it was appointing Chief Financial Officer Greg Smith on Tuesday to manage a newly created division which will merge multiple operational areas and protect supply lines.
Smith will handle corporate activities, finance and planning and will supervise production, supply chain and logistics, finance, strategy, business services and management starting May 1.
Boeing disclosed that Smith is tasked with bringing back the stability of the manufacturing and supply chain as the company and the larger aerospace industry try to bounce back from the ravages of the coronavirus.
Shares of Boeing were up just 0.6 percent in after hours trading after wrapping up its regular session down 5 percent.
The changes, under the guidance of new chief executive officer Dave Calhoun, are outlined in a company statement as "preparing for a post-pandemic industry footprint."
In a message to workers earlier, Calhoun cautioned that the scale of the passenger jet market is likely to be substantially smaller as the world recovers from the global health crisis. Calhoun said when the market goes through the recovery cycle for years to come, "we will need to balance supply and demand accordingly."
The company last month stated that it wanted the government to allot a minimum of $60 billion in access to private and public funding, including loan guarantees. The plane manufacturer did not detail what form of direct government aid it may work on.
Boeing, facing a 13-month pause on the 737 MAX deliveries and now disruptions to orders bigger aircraft as a result of the pandemic, said it had delivered 50 aircraft in the first quarter last week, barely one-third of the 149 in the previous year and the lowest since 1984 in the same period.
The 53-year old Smith has over the years consistently grown his responsibility. Chosen to be chief financial officer in 2011, in just three years he was bestowed the title of executive vice president in charge of business development and company strategy, then later assigned to oversee and manage all Boeing production operations.
Calhoun also is merging the company's legal and regulatory compliance arms, which includes global business controls, ethics and corporate conduct, into one organization spearheaded by chief legal officer, Brett Gerry.
Meanwhile, assembly facilities for Boeing's 747, 767 and 777 jets ramped up manufacturing on Tuesday. Production for Boeing 787 Dreamliner in Everett will reopen on Thursday and is expected to run at full capacity by end of the week, while the company promises its personnel full protection measurements against the coronavirus.
