(Reuters) -Boeing is exploring asset sales in an effort to boost its fragile finances by divesting its non-core or underperforming units, the Wall Street Journal reported on Sunday.
The plane maker reached an agreement last week to lay off a small defense unit that makes surveillance equipment for the U.S. military, the newspaper reported, citing people familiar with the deal.
Boeing has lurched from crisis to crisis this year since Jan. 5 when a mid-air door panel blew off a 737 MAX plane. Since then, the CEO has left, production has slowed as regulators investigate the safety culture, and in September 33,000 union workers went on strike.
The Journal reported that in recent financial performance meetings, new CEO Kelly Ortberg asked business unit heads to explain the value of those units to the company.
Boeing’s board recently met to discuss next steps for the company, with directors interviewing division heads and poring over reports to examine the condition of each unit, the report said.
Boeing declined to comment on the report.
Striking machinists at the plane maker will vote on Wednesday on a new contract proposal that includes a 35% pay increase over four years.
The work stoppage has halted production of the planemaker’s best-selling 737 MAX and 767 and 777 widebodies, putting further pressure on its already weak finances.
Earlier this month, Boeing announced it would cut 17,000 jobs, or 10% of its global workforce, and incur $5 billion in costs.
(Reporting by Shivani Tanna in Bengaluru; Editing by Hugh Lawson)
