The Boeing Co. logo is visible outside the company's offices near Los Angeles International Airport. — AFP file
Boeing is reportedly considering the sale of certain assets in an effort to strengthen its shaky financial position by divesting non-core or underperforming units, according to the Wall Street Journal. The aerospace giant recently finalized an agreement to sell a small defense unit that manufactures surveillance equipment for the U.S. military, the paper reported, citing sources familiar with the transaction.
Boeing has faced a series of crises this year, beginning on January 5 when a door panel detached from a 737 MAX jet mid-flight. Since then, the company's CEO has resigned, production has slowed due to regulatory scrutiny of its safety practices, and in September, 33,000 union workers went on strike.
The Journal reported that during recent financial performance meetings, new CEO Kelly Ortberg requested unit heads to outline the value of their respective divisions to the company. Boeing's board recently convened to discuss the company's future direction, where directors interrogated division leaders and reviewed reports to assess the health of each unit, the report stated. Boeing declined to comment on the report.
Machinists striking against the planemaker are scheduled to vote on a new contract proposal Wednesday, which includes a 35% pay increase over four years. The work stoppage has halted production of Boeing's best-selling 737 MAX and its 767 and 777 widebody jets, exacerbating the company's already precarious financial situation.
Earlier this month, Boeing announced it would reduce its global workforce by 17,000 jobs, or 10%, and take $5 billion in charges.
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