Weeks after Falls Church-based General Dynamics wrote down the value of its information systems business by $2 billion, the company said the unit’s leader will step down at the end of the month.
Gerard J. DeMuro, who came to GD through an acquisition in 1999, will “pursue new professional opportunities,” General Dynamics said in a release.
DeMuro became president of General Dynamics Communications Systems when he arrived at the company and was promoted to president of General Dynamics C4 Systems when the business was formed in 2002. A year later, he took over the information systems and technology group.
“Jerry DeMuro has made significant contributions to General Dynamics over the past 14 years that have enhanced shareholder value and deserve our recognition,” Phebe N. Novakovic, the company’s new chief executive, said in a statement. “We wish him continued success in his future pursuits.”
The departure follows struggles for General Dynamics and particularly its information technology business. The company last month reported a loss for the fourth quarter primarily driven by the devaluation of its IT unit.
In a call with analysts last month, Novakovic was starkly critical of recent decisions, particularly in acquisitions. DeMuro’s unit made a number of purchases in areas like health IT and mobility.
The acquisition process is “somewhat broken,” she said, and General Dynamics will not be making any more acquisitions until “we have reestablished the discipline in this process.”
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