Ted Colbert, former CEO of Boeing's Defense, Space & Security division, speaks during a press conference in Dubai on November 16, 2019.
Karim Sahib | AFP | Getty Images
president BoeingMicrosoft CEO Kelly Ortberg said Ted Colbert, the head of the company's defense unit, is leaving the company immediately, marking his first major executive shakeup since taking the top job in early August.
“At this critical juncture, our priority is to restore our customers’ trust and meet the high standards they expect from us to enable them to perform their critical missions around the world,” Ortberg said in a memo to employees on Friday. “By working together, we can improve our performance and ensure we meet our commitments.”
Ortberg thanked Colbert for his 15 years of service to Boeing and said the unit's chief operating officer, Steve Parker, would take over until the company announces a replacement for Colbert.
Boeing’s Defense, Space & Security unit generated nearly 40% of Boeing’s revenue in the first half of this year, but it has been plagued by production problems and cost overruns, including on the new 747 that will serve as Air Force One. In space, Boeing’s Starliner spacecraft is returning without the NASA astronauts who took it to the International Space Station in June. NASA said last month that they will take SpaceX’s Crew-9 spacecraft instead.
Colbert did not immediately respond to CNBC's request for comment.
