Boeing considering asset sales to strengthen financial position: Report
US aerospace company Boeing is reportedly mulling over selling off assets to strengthen its shaky finances. According to The Wall Street Journal, the strategy includes divesting from non-essential or underperforming divisions within the company. Just last week, Boeing had finalized a deal to sell off a minor defense division that manufactures surveillance equipment for the US military.
Turbulent year and financial challenges
To recall, Boeing has been plagued with a series of challenges this year. It all started with a safety incident involving a 737 MAX jet on January 5. The company's CEO resigned, production was slowed down amid regulatory investigations into its safety culture, and in September, 33,000 union workers went on strike. All of this has taken a huge toll on Boeing's financial health.
New CEO initiates financial performance review
In recent financial performance meetings, Boeing's new CEO Kelly Ortberg has asked company unit heads to assess their respective unit's value to the firm. The move comes as part of a broader strategy to assess the financial health and performance of different divisions within Boeing. The company's board has also been actively involved in this process, questioning division heads and reviewing reports on each unit's status.
Production halt due to workers' strike
The ongoing strike by machinists at Boeing has brought the production of its top-selling 737 MAX, and its 767 and 777 widebodies to a standstill. This has further strained the company's already fragile finances. The striking workers are due to vote on a new contract proposal, which includes a substantial pay increase of 35% over four years, this Wednesday.
Job cuts and financial charges
Earlier this month, Boeing had announced plans to cut 17,000 jobs, which is 10% of its global workforce. The company also expects to incur $5 billion in charges. This decision is yet another measure taken by the aircraft manufacturer, in its efforts to navigate through its current financial difficulties and stabilize its operations.
