Boeing Defense CEO Leaves Amid Trust Rebuilding Efforts

Ted Colbert, President, Boeing Defense, Space and Security, has left the company effective immediately, as announced by new CEO Kelly Ortberg.

In his statement to employees, Ortberg emphasized the urgency of restoring customer trust. “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,” he said. Steve Parker, currently the chief operating officer for Boeing Defense, Space and Security, will assume Colbert’s responsibilities until a permanent successor is appointed.

Colbert’s departure comes just weeks after Ortberg took over as CEO on Aug. 8, marking the first major leadership change under his administration. Colbert, who began his role in March 2022, faced significant challenges during his tenure, including managing fixed-price contracts that have led to extensive cost overruns and delivery delays.

Boeing’s defense and space divisions have struggled with multiple issues. Notably, the CST-100 Starliner faced setbacks when a flight test returned to Earth without two astronauts due to a malfunctioning thruster system. As of July, the division had incurred US$13.4 billion in actual or potential losses on fixed-price contracts awarded since 2011.

Colbert had previously acknowledged the need for a “reality-based approach” to new projects, particularly after losing two significant US Air Force programs. The Air Force publicly criticized Boeing for proposing substantial cost increases on key initiatives, including the E-7A Wedgetail and the B-52J upgrade, which led to intervention from the Department of Defense, bringing in an external expert to negotiate with the company.

The company now faces the challenge of enhancing predictability and stability within its operations, as Colbert had previously noted in discussions with Aviation Week.