Quick Hit:

Boeing is considering selling off assets to stabilize its struggling finances, following a year marked by safety issues, strikes, and leadership changes. The company recently agreed to sell a defense unit, though further sales are expected as it grapples with production slowdowns and worker strikes.

Key Details:

• Boeing plans to sell non-core or underperforming assets to strengthen its finances.

• The company is dealing with significant challenges after a 737 MAX safety incident in January.

• 33,000 union workers are on strike, halting production of key Boeing models.

Diving Deeper:

Boeing is reportedly looking to offload certain assets in an effort to bolster its financial position, as the aerospace giant faces one of its toughest years in recent history. According to The Wall Street Journal, Boeing is eyeing the sale of non-core or underperforming business units to recover from a series of setbacks, including safety concerns, production delays, and ongoing labor strikes.

The most recent asset sale involved a small defense unit responsible for manufacturing surveillance equipment for the U.S. military. The agreement was reached last week, though Boeing has not provided specific details about the sale.

This year has been marked by multiple crises for Boeing, beginning with a major safety scare on January 5, when a door panel detached from one of its 737 MAX jets during flight. The incident raised questions about the company’s safety practices, which have since been under investigation by regulators. The resulting scrutiny has slowed production and worsened Boeing's financial strain.

In addition to regulatory challenges, Boeing’s CEO stepped down amid the turmoil, and the company has had to contend with a massive worker strike. Roughly 33,000 machinists from the International Association of Machinists and Aerospace Workers have been on strike since September, demanding better working conditions and pay. The strike has crippled production of Boeing’s 737 MAX, along with its 767 and 777 widebody aircraft, adding further pressure to the company’s bottom line.

Boeing's leadership, including newly appointed CEO Kelly Ortberg, has been working to assess the company's various business units, seeking ways to restore profitability. Ortberg has asked division heads to report the financial value of their units, which will be weighed against the company’s broader needs as it considers further divestitures.

As financial pressures mount, Boeing also announced plans earlier this month to cut 17,000 jobs, amounting to 10% of its global workforce, and is taking $5 billion in charges. The company's board of directors recently met to discuss next steps, though the full scope of Boeing's strategy to regain financial stability remains unclear.

The worker strike is set to come to a head this week, with machinists expected to vote on a new contract proposal that includes a 35% wage increase over the next four years. The outcome could significantly impact Boeing’s recovery efforts, as the work stoppage has severely limited its production capabilities.

Boeing declined to comment on its asset sale plans, but the ongoing challenges underscore the urgency of the company's actions as it navigates a deeply troubled year.