Boeing CEO Dennis Muilenburg has resigned from his position effective immediately, the aerospace giant announced on Monday. Muilenburg's seat will be filled by the company's current chairman David Calhoun, who will resume the roles of president and CEO of Boeing from January 13, 2020.

As the company's top management transitions, Boeing Chief Financial Officer Greg Smith will be appointed as an interim CEO until the realms of the company are handed to Calhoun next month. As for Calhoun's role, a Boeing board member Lawrence W. Kellner has been confirmed as non-executive chairman of the board effective immediately.

In a press release, Boeing said that the change in leadership was necessary to restore confidence in the company moving forward as it works to repair relationships with regulators, customers, and all other stakeholders."

Boeing fires CEO Dennis Muilenburg
Boeing fires CEO Dennis MuilenburgTwitter/ Dennis Muilenberg

"Dave has deep industry experience and a proven track record of strong leadership, and he recognizes the challenges we must confront. The Board and I look forward to working with him and the rest of the Boeing team to ensure that today marks a new way forward for our company," Kellner said in a statement.

The decision to strip Muilenburg from his current roles at Boeing comes shortly after his chairmanship was taken away and handed to Calhoun in October. 

Boeing in a crisis

Muilenburg served as the CEO of the world's largest aerospace company in July 2015. But Boeing has been the centre of controversies after its primary commercial aircraft, the 737 Max, was grounded worldwide in March this year following two fatal crashes. In both crashes, a total of 346 people were killed.

Boeing had announced back in July that it needed to take a $5 billion hit in the quarterly revenue to compensate airline customers for the 737 Max crisis. The company's sales had plunged and its losses mounted during the time, presenting a tough year for Boeing.

Boeing announces leadership changeReuters

The return of 737 Max

With the new management, Boeing seems confident in bringing its controversial 737 Max back to service. The planemaker's new CEO and president shares the company's confidence in restoring Boeing's reputation and bringing back the 737 Max.

"I strongly believe in the future of Boeing and the 737 MAX. I am honored to lead this great company and the 150,000 dedicated employees who are working hard to create the future of aviation," Calhoun said.