Boeing Co. Said that Ted Colbert, who oversees its defense and space division, is leaving the company, the first major personnel change by Kelly Ortberg since he took over as chief executive officer last month.
Steve Parker, the defense unit’s chief operating officer, will take the helm at the struggling business on an interim basis until a replacement is found, Ortberg said in a message to employees on Friday. As Boeing’s leader, Ortberg is expected to make sweeping management changes as he works to turn around operations at the embattled aerospace and defense company.
Once a steady financial performer, the defense division has struggled with cost overruns on fixed price contracts and was buffeted by negative headlines for the Starliner space capsule after NASA opted not to use it to bring two astronauts back from the International Space Station.
The shake-up comes a week after Brian West, Boeing’s chief financial officer, told an investor conference that the defense business would again drag on earnings in the third quarter, with results set approach the $1 billion operating loss it recorded the previous quarter.
Ortberg told employees a few weeks ago that Pentagon leaders had vented their frustration over the company’s delays and performance shortfalls. He reiterated in a separate message on Friday that he will be keeping a close track on the company’s commercial and defense businesses in weekly operating reviews.
”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 in announcing the personnel change. “Working together we can and will improve our performance and ensure we deliver on our commitments.”
Ortberg assumed the top job in early August, taking the helm at a time when Boeing is struggling to overcome a severe crisis of confidence. The company has been struggling to regain its footing after a near-catastrophic accident in January, which exposed quality lapses at its factories making commercial aircraft.
Boeing shares pared losses and rose less than 1% after the close of trading in New York.
(Updates with CEO quote, details of management changes)