Boeing made a change in leadership within its defense and space division on Friday, replacing Theodore Colbert III as the head of the segment. Colbert was immediately removed from his position as president and CEO of Boeing Defense, Space & Security, and Steve Parker, the division’s chief operating officer, has been appointed as the temporary replacement while the company searches for a permanent successor.
Colbert, who had been with Boeing for 15 years and held various roles within the company, including chief information officer and leader of the global-services business, had been overseeing the defense unit. The decision to replace Colbert comes amidst financial challenges and setbacks faced by the defense and space business, notably involving the Starliner space capsule.
Boeing’s new CEO, Kelly Ortberg, expressed the company’s commitment to regaining the trust of its customers and meeting the high expectations set for critical missions globally in a memo addressing Colbert’s departure. Boeing is currently working towards resolving money-losing contracts with the Pentagon and NASA, particularly concerning projects such as the new Air Force One presidential planes and Air Force refueling tankers, which have been unprofitable.
The defense and space division incurred significant losses amounting to $6 billion since the beginning of the year, slightly surpassing the losses of Boeing’s airplane business during the same period. The Starliner capsule, developed by Boeing for NASA, encountered issues during its initial crewed mission to the international space station, leading NASA to deem it too risky for two astronauts to return to Earth in the capsule. Consequently, the astronauts will remain in space until February and will return aboard a SpaceX capsule instead.
