After several serious mid-flight safety incidents, Boeing management will undergo major changes, including the resignation of CEO Dave Calhoun.
Calhoun will step down at year’s end amidst a bevy of bad publicity. Boeing chairman of the board Larry Kellner will also resign and not submit himself for reelection in May at the company’s annual meeting.
Former Qualcomm CEO Steve Mollenkopf, currently a director at Boeing, will take over as char and lead the search for a new CEO.
The company’s president and CEO of commercial airplanes Stan Deal is also leaving, effective immediately, with current COO Stephanie Pope replacing him.
The shakeup comes after an Alaska Airlines flight on January 5 that saw a door plug low out on a Boeing 737 Max nine minutes into the flight.
Other incidents followed, and Boeing stock has dropped by 26% in 2024.
“As you all know, the Alaska Airlines Flight 1282 accident was a watershed moment for Boeing,” Calhoun wrote to employees on Monday, according to CNBC. “We must continue to respond to this accident with humility and complete transparency. We also must inculcate a total commitment to safety and quality at every level of our company.
“The eyes of the world are on us, and I know we will come through this moment a better company, building on all the learnings we accumulated as we worked together to rebuild Boeing over the last number of years,” the message continued. “We have another mountain to climb,” Calhoun said. “Let’s not avoid the call for action. Let’s not avoid the changes that we have to make in our factory. Let’s not avoid the need to slow down a bit and let the supply chain catch up.”
In a Monday interview on CNBC, Calhoun said it was “100%” his decision to resign.