Boeing's Strategic Asset Sales to Bolster Financial Position Amid Turbulent Year
ICARO Media Group
**Boeing Considers Selling Assets to Strengthen Financial Position**
Boeing is contemplating the sale of some of its assets to enhance its precarious financial status, focusing on divesting non-core or underperforming sectors, according to a recent report by the Wall Street Journal. The company has already reached an agreement to sell a small unit that manufactures surveillance equipment for the U.S. military.
The aerospace giant has faced numerous setbacks this year, starting on January 5, when a door panel blew off a 737 MAX jet while in flight. Following this incident, Boeing's CEO resigned, and production slowed as regulatory bodies scrutinized the company's safety practices. In September, the situation worsened when 33,000 union workers initiated a strike.
The Wall Street Journal noted that during recent financial-performance meetings, Boeing's new CEO, Kelly Ortberg, requested a valuation of the company's various units from their respective heads. The board has actively engaged in discussions on the future strategy of the company, questioning division heads and reviewing reports to assess each unit's performance and value.
As part of ongoing negotiations, striking machinists are scheduled to vote on a new contract proposal this Wednesday, which includes a 35% pay increase over four years. The strike has disrupted the production of Boeing's popular 737 MAX, as well as its 767 and 777 widebody aircraft, further straining the company's already fragile finances.
Earlier in the month, Boeing revealed plans to reduce its global workforce by 17,000 jobs, roughly 10% of its total staff, and to absorb $5 billion in charges. The company's efforts to streamline operations and cut costs are part of a broader strategy to stabilize and restore financial stability amidst ongoing challenges.