Boeing executive Ted Colbert is stepping down as head of the troubled company’s defense division with immediate effect, the company announced on Friday.

Boeing CEO Kelly Ortberg said in a memo to employees that Steve Parker will temporarily lead Boeing Defense, Space and Security until a permanent successor to Colbert is named. Parker is COO of Boeing’s $32.7 billion defense unit.

In the memo, Ortberg thanked Colbert for his 15 years of service at Boeing, but also said Boeing – which has experienced a series of egregious failures in the past year – needs to improve.

“At this critical juncture, our priority is to restore our customers’ trust and meet the high standards they expect from us to enable their important missions around the world,” said Ortberg. “Together, we can and will improve our performance and ensure we deliver on our commitments.”

Colbert took over Boeing’s defense division in March 2022 after previously leading Boeing Global Services. Later that year, he reorganized the division amid sharp revenue declines and quality concerns.

Colbert also maintained the company’s commitment to stop signing fixed-price contracts with the Pentagon. Such contracts have cost Boeing billions in losses, so the company has sworn off them, even if it meant giving up some key programs like the Survivable Airborne Operations Center (SAOC).

At the Farnborough Air Show in England in July, Colbert told reporters that the Air Force’s plan for SAOC would have required Boeing to accept fixed-price elements and other components that the company found unacceptable. He said if the Air Force required fixed-price contracts for its new autonomous collaborative fighter drones, Boeing would also stay away from that program.

“If it’s a fixed-price development program that requires a high level of maturity … that’s a recipe for failure,” Colbert said.

But Boeing Defense’s losses continued during Colbert’s tenure. The sector lost $1.8 billion in 2023 and is down $762 million so far in the first half of 2024.

Colbert’s dismissal marks the first major management change for Ortberg since he took over as Boeing CEO last month.

And this comes nearly two weeks after Boeing’s Starliner space capsule returned to Earth from the International Space Station without a crew due to safety concerns.

During the Starliner’s flight to the space station on June 5, engineers discovered several helium leaks and problems with the engines, according to NASA. NASA and Boeing engineers spent nearly three months testing the engines and reviewing data to figure out how to fix the problems. But on August 24, NASA decided it was too risky to fly the two astronauts home on the Starliner and opted to bring them home on a planned SpaceX mission in February of next year instead.

Ortberg is trying to get Boeing back on track after years of problems with the quality and safety of aircraft such as the Max passenger jets, the KC-46 Pegasus tanker and the new Air Force One presidential transport planes that damaged the company’s once-good reputation as an aviation giant.

Boeing is also reeling from the massive strike called by tens of thousands of its machinists on Sept. 13, which is also affecting the company’s defense programs such as the KC-46. Ortberg has spoken directly with workers to try to find a solution to the disagreements over issues such as pay and to end the strike, the company said. A prolonged strike would hurt production, deliveries and operations.

In July, Boeing pleaded guilty to conspiracy to defraud the United States. The charges stemmed from the crashes of two 737 Max aircraft. In January, the door plug on another 737 Max flew out mid-flight. Videos of the frightening scene on board went viral. The incidents led to congressional hearings on Boeing’s safety problems.