Ted Colbert, the head of Boeing’s Defence, Space & Security division, has been let go with immediate effect. Steve Parker, the division’s Chief Operating Officer, will temporarily assume the role while a search for a permanent replacement is conducted.
This leadership change comes as Boeing grapples with significant challenges, including financial strain and issues with several high-profile contracts. The new CEO, Kelly Ortberg, has emphasised the need to rebuild customer trust and improve performance. Colbert’s dismissal coincides with Boeing’s efforts to conserve cash, including furloughs announced amid a strike by more than 32,000 workers.
In the most recent quarter, Boeing’s Defence, Space & Security division recorded a loss of US$913 million, up from the US$527 million loss in the same quarter the previous year, following a narrow profit in the first quarter. The division posted an annual loss of US$1.8 billion in 2023, an improvement from 2022. However, both the second quarter loss and the 2023 full-year loss exceeded those of Boeing’s troubled commercial aircraft unit for the same periods.
