In a strategic move to address ongoing challenges within Boeing's defense, space, and security unit, CEO Kelly Ortberg has announced the immediate departure of Ted Colbert, the head of the division. Boeing's CEO Ortberg, who assumed the position in August, has appointed Steve Parker, the unit's chief operating officer, to take over Colbert's responsibilities on an interim basis until a successor is named in the future.

The space segment of Boeing's business has faced setbacks, notably with NASA's recent decision to send Boeing's Starliner capsule back without astronauts, after numerous setbacks over the years. The Starliner project has incurred costs exceeding $1.6 billion since 2016 due to overruns, according to a Reuters analysis of filings. Ortberg highlighted the importance of managing programs effectively to uphold Boeing's strong reputation in the industry and ensure its competitiveness going forward.

Boeing's defense, space, and security unit, a significant component of its operations, has reported substantial losses in 2023 and 2022, primarily due to cost overruns on fixed-price contracts. Despite the high margins associated with such contracts, they expose defense contractors to inflationary pressures that have impacted corporate earnings across the U.S. Cormier's departure coincides with Boeing's efforts to conserve resources by announcing furloughs during a strike involving over 32,000 employees. The company's stock prices have reflected these challenges, closing down approximately 1% on Friday and experiencing a 41% decline since the beginning of the year.