Leidos shakes up C-suite in restructuring
Reports $3.9B in revenue for Q3
Months after new Leidos CEO Tom Bell hinted at a “new North Star” for the Reston-based Fortune 500 contractor, the company has announced a shakeup of its C-suite and a reorganization.
The company solidified the changes Thursday, two days after releasing its third-quarter report, which included revenues of $3.9 billion for the quarter, an increase of 9% over the same period in 2022. Beginning Jan. 1, 2024, Leidos will be organized into five sectors. Those are:
- Health and civil, led by President Liz Porter, who currently leads the company’s health group;
- National security, led by President Roy Stevens, the current leader of the company’s intelligence group;
- Commercial and international, led by President Vicki Schmanske, who currently serves as executive vice president of Leidos Corporate Operations;
- Digital modernization, led by President Steve Hull, who currently serves as executive vice president for enterprise and cyber solutions and was also Leidos’ chief information officer from 2016 through March 2022;
- Defense systems, led by President Cindy Gruensfelder, who previously served as vice president and general manager of Arlington County-based Boeing’s missile and weapons systems division. Her retirement was announced in November 2022 when Boeing announced a restructuring from eight divisions to four.
Leidos said its Alabama-based Dynetics unit will continue to be led by President Steve Cook. Leidos acquired Dynetics in 2020 in a $1.65 billion all-cash deal.
At the C-suite level, Gerry Fasano, who currently serves as president of the defense group, will become chief growth officer, and will be responsible for fusing strategy, marketing, sales, government affairs and communications. Carly Kimball, who currently serves as chief accounting officer and corporate controller, will become Leidos’ chief performance officer and will be responsible for program execution, real estate, security, IT and procurement.
“These leaders bring a combination of expertise, vision, and unwavering dedication that is essential for guiding Leidos into the next decade,” Bell said in a statement. “With this exceptional leadership at the top table and the dedication of our entire team, I am confident that our trajectory of innovation and success will continue and accelerate.”
Tuesday’s revenue announcement also included an income loss of $396 million, which the company said reflected $699 million in impairment and restructuring charges associated with its Security Enterprise Solutions unit. That unit, which provides technologies for airports, ports and borders, has been impacted by delays in airline travel infrastructure projects, and Leidos also refined its portfolio in the third quarter, nixing some products and also ceasing operations in some countries, the company said in a U.S. Securities and Exchange Commission filing.
Leidos stock increased from $100.33 a share at 9:50 a.m. Thursday to $103.28 by about 3 p.m. Bell mentioned the “new North Star” idea in a presentation coinciding with his first earnings call on Aug. 1.
Bell took over as CEO of Leidos in May from Roger Krone, who retired that month as CEO and board chairman after nine years of leading Leidos. Bell previously served as CEO and chair of Rolls-Royce North America.
Leidos employs 47,000 people and reported $14.4 billion in 2022 revenue.