In Short:
Boeing Co. announced that Ted Colbert, head of its defense and space division, is leaving the company. Steve Parker, the division’s COO, will take over temporarily. The division has faced challenges with cost overruns and negative press from NASA’s decision not to use its Starliner capsule. Boeing’s defense sector is expected to report losses again this quarter.
Big Changes at Boeing: Ted Colbert Steps Down
In a significant shift for **Boeing Co.**, **Ted Colbert**, who has been steering the company’s defence and space division, is parting ways with the organization. This move marks the first major personnel change initiated by **Kelly Ortberg**, who recently took the reins as Chief Executive Officer.
Interim Leadership Takes Charge
Following Colbert’s departure, **Steve Parker**, the current Chief Operating Officer of the defence unit, will step up to lead the struggling division on an interim basis. This transition comes as the defence sector faces some serious challenges.
Struggles in the Defence Division
Once a backbone of financial stability for **Boeing**, the defence division has encountered a series of hurdles, including significant cost overruns on fixed-price contracts. To add to its woes, the division faced negative media coverage surrounding the **Starliner** space capsule after **NASA** made the decision to not use it for the safe return of two astronauts from the **International Space Station**.
Financial Woes Ahead
The timing of this leadership shake-up is particularly critical, as just a week prior, **Brian West**, Boeing’s Chief Financial Officer, disclosed at an investor conference that the defence business is once again expected to negatively impact the company’s earnings in the upcoming third quarter. He projected losses that would mirror the nearly **$1 billion** operational loss reported in the last quarter.
