Boeing ousts defence chief as firm seeks to right itself

Boeing has announced the immediate departure of Ted Colbert from his position as head of the company’s defence sector, marking a significant leadership change as the firm aims to stabilize following a series of setbacks.

Steve Parker, Boeing's chief operating officer for its $32.7 billion defence segment, will take over temporarily until a permanent replacement is found, Caliber.Az reports per foreign media.

In a memo to employees, CEO Kelly Ortberg expressed gratitude for Colbert’s 15 years at the company but emphasized the urgent need for Boeing to regain the trust of its customers and meet high operational standards. "At this critical juncture, our priority is to restore the trust of our customers and meet the high standards they expect of us," Ortberg stated, underscoring the necessity for improved performance.

Colbert, who assumed leadership of Boeing Defense, Space and Security in March 2022, had previously managed Boeing Global Services. He attempted to reorganize the defence sector amid significant revenue losses and quality issues. Notably, Colbert maintained Boeing’s decision to avoid fixed-price contracts with the Pentagon, which had previously led to substantial financial losses for the company.

Despite these efforts, Boeing Defence reported a loss of $1.8 billion in 2023, with an additional $762 million loss in the first half of 2024. Colbert’s ousting represents Ortberg's first major management shift since he took the helm of Boeing last month.

This change comes shortly after Boeing’s Starliner space capsule returned to Earth without a crew due to safety concerns, following issues encountered during its flight to the International Space Station. Additionally, Boeing is facing a significant strike by tens of thousands of machinists, which has disrupted operations and could further impact defence programs like the KC-46 Pegasus refueling tanker.

Boeing's challenges have been compounded by recent legal troubles, including a guilty plea to conspiracy charges related to the 737 Max crashes, prompting congressional scrutiny of the company’s safety practices. Ortberg is now focused on steering Boeing back to stability and rebuilding its reputation.