In order to improve performance and increase operational efficiencies, Textron ( TXT) announced that it's consolidating two of its product segments and eliminating two unit president positions.

The company said its industrial components and industrial products segments will become one unit called the industrial segment. Textron's Chief Operating Officer Steve Loranger will become head of the new unit, in addition to his other responsibilities.

The new structure eliminates two segment president positions and streamlines the staffs previously required to support them, Textron said. Four business unit executives will now report directly to Loranger.

"Textron has set aggressive targets to improve its operating performance. By having more of our businesses report directly to me, we are eliminating staff costs while accelerating our communications and decision-making processes," said Loranger.

Additionally, the company said to take advantage of technological and market synergies within its aircraft and defense businesses, Textron Systems, a defense systems and aircraft components manufacturer, and Lycoming, a maker of aircraft piston engines, will report to the CEO of Bell Helicopter, Mike Redenbaugh. Both units are headed by Textron Systems' President, Richard Millman.

Recently, shares of Textron were up 1.1%, or 41 cents, to $36.65.