Boeing Explores Asset Sales to Improve Finances
(Reuters) – Boeing is exploring asset sales to enhance its fragile financial standing by shedding non-core or underperforming units, according to a report by the Wall Street Journal on Sunday.
The planemaker recently agreed to offload a small defense unit that manufactures surveillance equipment for the U.S. military, as reported by individuals familiar with the deal.
Boeing (NYSE:BA) has faced multiple crises this year, starting with an incident on January 5 when a door panel detached from a 737 MAX during flight. This event led to the departure of its CEO, halted production while regulators investigate safety practices, and a strike by 33,000 union workers in September.
In recent financial performance meetings, new CEO Kelly Ortberg requested the heads of company units to outline their units' value to the organization.
Boeing’s board recently convened to deliberate on the company's future, during which directors questioned division heads and scrutinized reports regarding each unit's status.
Boeing chose not to comment on the report.
Workers striking at the planemaker are scheduled to vote on Wednesday regarding a new contract proposal that includes a 35% pay increase over four years.
The ongoing work stoppage has disrupted production of Boeing's top-selling 737 MAX, as well as its 767 and 777 widebody jets, compounding pressure on its already weak financial position.
Earlier this month, Boeing announced plans to cut 17,000 jobs, representing 10% of its global workforce, and to incur $5 billion in charges.
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