(Reuters) – Boeing is considering asset sales in a bid to shore up its weak financials by selling off non-core and underperforming units, the Wall Street Journal reported on Sunday.
The newspaper reported, citing people familiar with the deal, that the company reached an agreement last week to offload a small defense unit that makes surveillance equipment for the U.S. military.
Boeing has been going from crisis to crisis this year since a door panel blew off a 737 MAX jet mid-air on January 5th. Since then, the company’s CEO has resigned, production has slowed as regulators investigate the company’s safety culture, and 33,000 union members went on strike in September. .
The newspaper reported that during a recent financial performance meeting, new CEO Kelly Ortberg asked the heads of the company’s divisions to explain their value to the company.
Boeing’s board of directors recently met to discuss the company’s next steps, and board members questioned department heads and reviewed reports to examine the status of each division, the report said. .
Boeing declined to comment on the report.
Striking mechanics at the aircraft manufacturer are scheduled to vote Wednesday on a new contract that includes a 35% pay increase over four years.
The factory shutdown halted production of the company’s best-selling 737 MAX and wide-body 767 and 777 planes, putting further pressure on its already fragile finances.
Earlier this month, Boeing announced it would cut 17,000 jobs, or 10% of its global workforce, and incur costs of $5 billion.
(Reporting by Shivani Tanna in Bengaluru; Editing by Hugh Lawson)
