Boeing had already absorbed the Rockwell International Corporation's aerospace and defense divisions in December 1996. Combination with its longtime rival, McDonnell Douglas, produced a new organization structure around three main divisions: Boeing Commercial Aviation Group, Space & Defense Systems, and a Shared Services Group. Boeing's Phil Condit was tapped as chairman and CEO for the new corporation, and McDonnell Douglas' former president Harry C. Stonecipher took the helm as president and chief operating officer.
The merger was not entirely smooth, and Boeing suffered losses due to production delays and sagging investor confidence. It was also the target of several major strikes in the late 1990s. The company announced on March 21, 2001, that it would relocate its corporate headquarters to another city.