Boeing's CEO Kelly Ortberg announced the departure of Ted Colbert, the head of the company's defense unit, marking the first major executive change since Ortberg assumed the role in early August. The move comes amidst a critical period for the company, with Ortberg emphasizing the importance of restoring customer trust and meeting high standards to support critical missions worldwide. Colbert, who served Boeing for 15 years, will be succeeded on an interim basis by the unit's Chief Operating Officer, Steve Parker, until a permanent replacement is appointed.

Boeing's defense, space, and security unit has been a significant revenue driver, accounting for approximately 40% of the company's earnings in the first half of the year. However, the sector has faced challenges such as production issues and cost overruns, particularly in projects like the new Air Force One aircraft. Additionally, the space sector has encountered setbacks, with Boeing's Starliner spacecraft returning without the NASA astronauts it had taken to the International Space Station in June. SpaceX's Crew-9 vehicle will now facilitate the astronauts' return, as confirmed by NASA last month.

Colbert's departure from Boeing comes at a crucial time for the company, as it navigates operational hurdles and works towards enhancing its performance and delivery commitments. CEO Ortberg expressed gratitude for Colbert's contributions to Boeing and stressed the collaborative effort needed to drive improvements within the organization. The departure of a key executive like Colbert and the subsequent leadership transition signify a period of change and reassessment within Boeing's defense unit, aiming to address operational challenges and streamline processes for future success.