Boeing's Defense sector head, Ted Colbert, is stepping down.
The airplane manufacturer announced that Ted Colbert, the head of Boeing Defense, Space & Security (BDS), will be stepping down from his position, with Steve Parker stepping in as an interim leader until a new replacement is appointed later on. Boeing's CEO, Kelly Ortberg, publicly revealed this information on Friday, stating that Parker would immediately take control of BDS operations.
Ortberg commended Colbert's 15 years of service with The Boeing Company, praising his contributions to supporting customers, employees, and communities, particularly during this crucial period of restoring customer trust and maintaining high standards.
Boeing is currently grappling with financial hardship, as it announced layoffs due to a strike involving more than 32,000 of its workers. This move is part of an attempt to save cash.
The most recent quarter saw Boeing's Defense, Space & Security unit report a loss of $913 million, increasing from the $527 million loss reported in the same period the previous year. The annual loss in 2023 totaled $1.8 billion, a significant decrease from 2022's figures. However, both the second quarter loss and the full-year loss of 2023 surpassed the amount lost by Boeing's struggling commercial aircraft unit in the corresponding periods.
Boeing's shares ended the trading day on Friday with a decrease of approximately 1%, marking a total loss of approximately 41% for the year.
(Reporting by Utkarsh Shetti in Bengaluru; Editing by Shounak Dasgupta)
Boeing's financial struggles may impact its business operations, as the Defense, Space & Security unit reported a significant loss in the most recent quarter. With Boeing grappling with financial hardship, the appointment of an interim leader for BDS could be a strategic move to streamline business operations and cut costs.
