“CEO Kelly Ortberg Faces First Major Executive Shake-Up as Boeing Navigates Production Woes and Cost Overruns”
Boeing’s defense division is experiencing a significant leadership change with the sudden departure of Ted Colbert, the head of Boeing Defense, Space & Security. CEO Kelly Ortberg announced in a staff memo on Friday that Colbert is leaving the company effective immediately, marking Ortberg’s first major executive shift since taking the top role in August.
Ortberg emphasized the importance of restoring customer trust and improving performance, particularly in light of Boeing’s ongoing production and cost challenges. “At this critical juncture, our priority is to restore the trust of our customers and meet the high standards they expect of us to enable their critical missions around the world,” Ortberg said. He thanked Colbert for his 15 years of service and stated that Steve Parker, the current Chief Operating Officer of the defense unit, would temporarily take over until a permanent replacement is named.
Boeing’s defense division, which contributed nearly 40% of the company’s revenue in the first half of 2024, has been grappling with a series of operational difficulties. These include delays and cost overruns on the Air Force One project and technical issues in the space sector. Notably, Boeing’s Starliner spacecraft, which successfully transported NASA astronauts to the International Space Station in June, will return without them, as NASA opted for SpaceX’s Crew-9 vehicle for their return mission.
This leadership transition comes at a pivotal time for Boeing, which is under pressure to improve its performance and deliver on its commitments across its defense and space programs. With the company’s reputation on the line, all eyes are on how Ortberg will steer Boeing through these challenges and rebuild its credibility in the eyes of both customers and stakeholders.
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