Northrop streamlines organizational sectors

Northrop Grumman Corp. has made several organizational changes that the company said will strengthen its alignment with customers, improve the company’s program performance and growth potential, and enhance its cost competitiveness.

The actions, which are effective immediately, include streamlining the company by reducing the number of its sectors from seven to five. The new sectors will be Aerospace Systems, Electronic Systems, Information Systems, Shipbuilding and Technical Services.

Merging the Integrated Systems and Space Technology sectors will create an approximately $10 billion business that will be led by Gary Ervin, corporate vice president and president of the Integrated Systems sector, Northrop Grumman officials said.

The new Information Systems sector combines the Information Technology and Mission Systems sectors. It will be approximately a $10 billion global provider of advanced solutions for defense, intelligence, civil agency and commercial customers. The sector will be led by Linda Mills, corporate vice president and president of the Information Technology sector.

The company also has named Alexis Livanos corporate vice president and chief technology officer, positioning Northrop Grumman for the future growth of technological innovation.

As CTO and a member of the company’s Corporate Policy Council, Livanos will increase Northrop’s focus on developing new technologies for our customers’ future needs, said Ronald Sugar, Northrop Grumman chairman and chief executive officer, in a statement Jan. 7.

“Key to our success is the early anticipation of changes in our markets, and then the adjustment of our business structure to better position us to address our customers’ needs and improve our competitiveness,” Sugar said. “These actions build on last year’s realignment of our shipbuilding business into a single sector and the establishment of a centralized Enterprise Shared Services organization.”

The company also announced that Philip Teel, corporate vice president and president of the Mission Systems sector, will retire on Jan. 31. Until then he will serve as corporate vice president reporting to Sugar and will assist with the sector transition, officials said.

Northrop Grumman, of Los Angeles, ranks No. 3 on Washington Technology’s 2008 Top 100 list of the largest federal government prime contractors.