Key Points
Boeing's defense division amassed billions of dollars in cost overruns and NASA felt it risky to use Starliner to bring two astronauts back from space..
Boeing Co. ousted the top executive for its defense and space division, in the first major shakeup by Kelly Ortberg since he took over as chief executive officer last month.s)..
Ted Colbert, a 15-year veteran at Boeing, will leave the company with immediate effect and be succeeded on an interim basis by Steve Parker, the defense units chief operating officer, Ortberg said in a message to employees on Friday..
Boeing was buffeted by negative headlines for the Starliner space capsule after NASA decided it was too risky to use it to bring two astronauts back from the International Space Station, leaving the pair in space until early next year, much longer than originally planned..
The shake-up comes a week after Brian West, Boeings chief financial officer, told an investor conference that the defense business would again drag on earnings in the third quarter, with results set to approach the $1 billion operating loss it recorded the previous quarter..
