Bad Times for Blackwater, ahem, Xe.

This morning, Erik Prince, the co-founder and chief executive officer of Blackwater stepped down. A former Navy SEAL and heir to a multi-million dollar auto-parts fortune, Prince was the brains behind and public face of the company, which garnered a billion dollars’ worth of government contracts between 2001 and 2008. But, the company’s fortunes have ...

588116_090302_blackwaterresized2.jpg
588116_090302_blackwaterresized2.jpg

This morning, Erik Prince, the co-founder and chief executive officer of Blackwater stepped down. A former Navy SEAL and heir to a multi-million dollar auto-parts fortune, Prince was the brains behind and public face of the company, which garnered a billion dollars’ worth of government contracts between 2001 and 2008.

But, the company’s fortunes have changed with the administration. Five of its former employees are currently on trial for manslaughter, for killing unarmed civilians. This year, Iraq ousted Blackwater and it lost a State Department contract worth a third of its revenue.

Prince’s resignation comes as part of a “comprehensive restructuring,” initiated last month. Blackwater fired a number of employees, and announced it would no longer seek U.S. security contracts, instead focusing on training law enforcement officials and security guards in its facilities across the world. It also rebranded itself “Xe,” pronounced “zee.” (The firm provided no explanation for the name, the symbol for the noble gas Xenon.)

Rep. Jan Schakowsky, chair of the Intelligence Subcommittee on Oversight and Investigations, responded:

“This is the second time Blackwater has tried to change its image by rebranding itself. No matter what it calls itself, Blackwater can’t change the fact that its lethal actions have resulted in the deaths of innocent Iraqi civilians. The company’s reckless actions have also put our troops in harm’s way and jeopardized our mission in Iraq. I’m glad that the State Department under Secretary of State Clinton has decided not to renew Blackwater’s contract in Iraq. Blackwater’s notorious reputation will outlast its name.”

Maybe a new jingle?

Scott Olson/Getty Images

Annie Lowrey is assistant editor at FP.
Read More On Business | Iraq | Military

More from Foreign Policy

The USS Nimitz and Japan Maritime Self-Defense Force and South Korean Navy warships sail in formation during a joint naval exercise off the South Korean coast.
The USS Nimitz and Japan Maritime Self-Defense Force and South Korean Navy warships sail in formation during a joint naval exercise off the South Korean coast.

America Is a Heartbeat Away From a War It Could Lose

Global war is neither a theoretical contingency nor the fever dream of hawks and militarists.

A protester waves a Palestinian flag in front of the U.S. Capitol in Washington, during a demonstration calling for a ceasefire in Gaza. People sit and walk on the grass lawn in front of the protester and barricades.
A protester waves a Palestinian flag in front of the U.S. Capitol in Washington, during a demonstration calling for a ceasefire in Gaza. People sit and walk on the grass lawn in front of the protester and barricades.

The West’s Incoherent Critique of Israel’s Gaza Strategy

The reality of fighting Hamas in Gaza makes this war terrible one way or another.

Biden dressed in a dark blue suit walks with his head down past a row of alternating U.S. and Israeli flags.
Biden dressed in a dark blue suit walks with his head down past a row of alternating U.S. and Israeli flags.

Biden Owns the Israel-Palestine Conflict Now

In tying Washington to Israel’s war in Gaza, the U.S. president now shares responsibility for the broader conflict’s fate.

U.S. President Joe Biden is seen in profile as he greets Chinese President Xi Jinping with a handshake. Xi, a 70-year-old man in a dark blue suit, smiles as he takes the hand of Biden, an 80-year-old man who also wears a dark blue suit.
U.S. President Joe Biden is seen in profile as he greets Chinese President Xi Jinping with a handshake. Xi, a 70-year-old man in a dark blue suit, smiles as he takes the hand of Biden, an 80-year-old man who also wears a dark blue suit.

Taiwan’s Room to Maneuver Shrinks as Biden and Xi Meet

As the latest crisis in the straits wraps up, Taipei is on the back foot.