Updated: September 25, 2024
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Ted Colbert, the former head of Boeing’s defense division, was removed due to mounting pressure from a key customer — the Department of Defense — rather than any concerns related to diversity, equity, and inclusion (DEI). According to inside Boeing sources, and not DoD sources, Secretary of Defense Lloyd Austin pushed for Colbert’s departure amid growing dissatisfaction with Boeing Defense’s performance.
In a written statement from the DoD, "Any suggestion that Secretary Austin pushed for the Boeing Defense Division CEO’s departure is completely false. That was purely an internal Boeing matter in which the Secretary played absolutely no role.” Maj Gen Pat Ryder, USAF, DoD Press Secretary
In a written statement from Boeing “Secretary Austin played no role on this matter and any suggestion otherwise is completely false.” Mike Friedman, Communications, The Boeing Company
While speculation may arise about the role of DEI in Colbert’s departure, inside sources confirm that performance issues and customer demands drove the decision. However, other inside sources have expressed skepticism, noting that it is "amazing" Boeing is attempting to pin Colbert’s firing on Lloyd Austin to cover up its internal pushback on diversity. These sources allege that Boeing has been quietly canceling many of its diversity activities and recruitment efforts, suggesting the company may be using Austin as a scapegoat to shift focus from its diminishing commitment to DEI initiatives.
Senior military officials have stated, "There is no way Secretary Lloyd Austin was behind this."
Colbert was also heralded internally for his mentoring and his support of initiatives like the Thurgood Marshall Scholarship Fund. His dedication to uplifting underrepresented groups within Boeing and through external partnerships gained him a strong following inside the company. Many employees admired his commitment to fostering a diverse and inclusive workforce, as well as his efforts to help young professionals and students pursue their career goals.
In a memo distributed to Boeing employees, newly appointed CEO Ortberg thanked Colbert for his 15 years of dedicated service but acknowledged the urgent need for Boeing to improve its overall performance, particularly in the defense sector, which has struggled with quality issues and financial losses.
Elon Musk ripped Boeing over a filing that appeared to show the aeronautical giant two years ago began using diversity, equity and inclusion goals as incentives for executive compensation after previously focusing solely on safety and quality controls.
“Do you want to fly in an airplane where they prioritized DEI hiring over your safety? That is actually happening,” Musk said on X on Wednesday.
“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 wrote in the memo. “Working together, we can and will improve our performance and ensure we deliver on our commitments.”
Colbert, who took over Boeing’s defense division in March 2022, implemented significant changes, including reorganizing the defense business to address steep revenue losses and operational quality concerns. Colbert’s most controversial decision was the company’s refusal to enter into fixed-price contracts with the Pentagon. Colbert argued that these contracts had previously led to billions of dollars in losses for Boeing. He insisted that the company should no longer take on that financial risk, even if it meant passing on major government programs like the Air Force’s Survivable Airborne Operations Center (SAOC).
“If it’s a fixed-price development program that requires a ton of maturity … that is a recipe for failure,” Colbert stated at the Farnborough Air Show in July.
However, despite Colbert’s efforts to mitigate financial risks, Boeing’s defense division continued to post significant losses, with $1.8 billion lost in 2023 and an additional $762 million in the first half of 2024. These continued losses and frustration from the Department of Defense led to increasing calls for change at the top of the division.
Colbert’s departure represents the first significant leadership change under CEO Ortberg, signaling a clear shift in Boeing’s strategy to restore performance in its defense operations. Moving forward, Boeing’s new leadership will need to navigate the challenges of regaining the trust of its government clients while addressing ongoing financial concerns within its defense division.
While speculation may arise about DEI's role in Colbert’s departure, inside sources confirm that the decision was driven by performance issues and customer demands. As Boeing Defense moves forward, the company will be under pressure to demonstrate that it can deliver on its commitments to the U.S. government and avoid the financial pitfalls that have plagued the division in recent years.
The Congressional Black Caucus is watching.
One of the companies under the CBC’s lens is Boeing, which has faced both internal and external challenges in its DEI efforts. The departure of Ted Colbert, Boeing’s first Black CEO of the Defense, Space & Security division, marked a significant moment for the company. Colbert, a powerful advocate for DEI, was instrumental in shaping Boeing’s inclusion strategies and mentoring the next generation of leaders within the aerospace industry. His departure has raised questions about Boeing’s future direction in its DEI initiatives, especially at a time when the company is grappling with broader challenges related to workforce diversity, inclusion, and equity.
Boeing has faced scrutiny for its lack of representation in senior leadership roles, with critics pointing to the underrepresentation of people of color in key positions. The company’s diversity challenges are compounded by ongoing struggles in regaining public trust following safety concerns and the global grounding of the 737 MAX. In addition to operational and reputational hurdles, Boeing has to prove its commitment to fostering a more inclusive culture, especially as anti-DEI forces in the corporate world grow louder.
The CBC’s call for accountability has been particularly relevant for companies like Boeing, where high-profile departures and internal challenges have highlighted the importance of sustained, actionable DEI efforts. Colbert’s exit serves as a reminder that even leading figures in the fight for equity face significant obstacles, and that the fight for DEI within corporations must be relentless.