It appears that Boeing might be contemplating the disposal of certain sectors of its operations.
American aircraft maker Boeing is reportedly looking into selling off some assets to strengthen its financial position. The company allegedly sealed a deal last week to offload a minor defense division that manufactures spy gear for the U.S. military, as per sources close to the matter, according to The Wall Street Journal. Boeing chose to remain silent on the matter.
Recently, Boeing's fresh CEO, Dave Calhoun, has been pressing division heads to substantiate their units' worth to the company. This year has been a tumultuous one for Boeing, as it competes with Airbus. In January, a piece of the aircraft's cabin wall broke off from a Boeing 737 MAX during flight, placing immense stress on the board and prompting a leadership reshuffle. Furthermore, around 33,000 unionized employees have been on strike since September 13.
However, there are indications of recovery. In the labor dispute, Boeing and the unions have reached an agreement on a new proposal offering a 35% wage increase over a four-year period, which will be presented to the striking employees next Wednesday. Industry experts estimate the strike is costing the company about $1 billion a month.
The acceptance of this offer by the employees is uncertain. The union is demanding a 40% wage increase over four years and additional benefits. An earlier Boeing offer of a 25% wage increase was turned down by the employees. Last week, Boeing announced plans to reduce its workforce by 10% or approximately 17,000 jobs, citing the necessity to balance staffing with financial realities.
Boeing is considering other ways to optimize its financial situation beyond asset sales, such as restructuring certain divisions or reducing its workforce. Despite the union's demand for a 40% wage increase, other companies in the industry have not offered such high increases during this period of financial challenges.
