Ted Colbert, the CEO of Boeing’s Defense, Space, and Security division and a past recipient of the Black Engineer of the Year award, is stepping down effective immediately.
Colbert’s departure, which was announced by Boeing’s new CEO, Kelly Ortberg, is seen by some as a setback for Boeing’s commitment to diversity, especially as reports suggest that top women and minority leaders have been steadily leaving the company in recent years.
A recent exodus of women and minority leaders
According to CNBC, Boeing’s defense, space and security unit generated nearly 40% of Boeing’s revenue in the first half of this year, but it has struggled with production problems and cost overruns, including on the new 747s that will serve as Air Force One aircraft.
In the space sector, Boeing’s Starliner is returning without the NASA astronauts who took it to the International Space Station in June. They will instead take SpaceX’s Crew-9 vehicle back, NASA said last month.
“I’m not chasing revenue,” Colbert said during a FlightGlobal dot com interview in July. Instead, he is seeking to return the airframer to its origins as a world leader in aerospace design and production. “This is an engineering company,” Colbert said. “Defence, at its core, is about great engineering.”
In a company-wide email, Ortberg stressed the need for Boeing to make strategic investments to strengthen its engineering capabilities, improve first-time quality, and restore its program management excellence.
Boeing's Commitment to Diversity Under Fire
In recent weeks, Boeing has been criticized by high-profile figures, including Elon Musk, over its inclusion of diversity, equity, and inclusion (DEI) goals in executive compensation packages. According to a proxy statement filed with the Securities and Exchange Commission, Boeing introduced these DEI targets in 2022, adding them to the list of goals for executive bonuses, which had previously focused solely on safety and quality.
Musk took to X (formerly Twitter) to express his disapproval, questioning the prioritization of DEI goals in the aviation industry. "Do you want to fly in an airplane where they prioritized DEI hiring over your safety? That is actually happening,” Musk wrote in reaction to a filing from Boeing. His comments followed a nearly catastrophic incident with an Alaska Airlines flight that suffered a fuselage panel blowout over the weekend.
Boeing's decision to incorporate climate and DEI targets into its incentive plan has sparked debate, with critics arguing that safety and quality should remain the primary focus. However, Boeing maintains that it can balance its long-standing commitment to safety with broader goals that include fostering an inclusive and diverse workforce—goals that the company views as essential to driving innovation and growth in the competitive aerospace industry.
Operational difficulties and internal cultural challenges
While Boeing’s operational difficulties are front and center, the company is also grappling with internal cultural challenges, particularly around diversity and inclusion.
Ted Colbert, as one of Boeing’s most prominent Black executives, was a strong advocate for inclusive hiring practices and increasing representation at all levels of the company.
The exodus of key talent has raised concerns that Boeing may be stepping away from its inclusive hiring and recruitment programs.
As the company focuses on financial recovery and operational improvements, there is a fear that diversity initiatives could take a back seat.
Addressing cultural and structural issues
This shift could have long-term consequences, as Boeing risks losing the competitive advantage that a diverse and innovative workforce provides in an industry that thrives on new perspectives.
Colbert’s exit underscores the tension between Boeing’s need for operational excellence and its commitment to fostering a diverse and inclusive leadership pipeline.
As Boeing recalibrates under Ortberg’s leadership, and he should and has every right to select his new team, how it addresses these cultural and structural issues will be crucial to its future success. We will be watching.