Boeing to consider selling assets in order to improve financial situation, according to report from the Wall Street Journal

(Reuters) – Boeing is currently exploring various asset sales in an effort to bolster its delicate financial situation by divesting non-core or underperforming units, as reported by the Wall Street Journal on Sunday.

According to sources familiar with the matter, the aircraft manufacturer recently finalized a deal to sell off a small defense unit responsible for producing surveillance equipment for the U.S. military.

Boeing has faced a series of challenges throughout the year, beginning on Jan. 5 when a door panel detached from a 737 MAX aircraft mid-flight. Subsequently, the company’s CEO resigned, production was slowed due to safety investigations, and in September, 33,000 union workers went on strike.

In recent financial-performance meetings, newly appointed CEO Kelly Ortberg has tasked unit leaders with assessing the value of their respective divisions to the company.

The company’s board recently convened to deliberate on the company’s next steps, grilling division heads and scrutinizing reports to evaluate the status of each unit, according to the Journal’s report.

Boeing declined to provide a comment on the report.

Striking machinists at Boeing are scheduled to vote on a new contract proposal on Wednesday that includes a substantial 35% pay raise over four years.

The ongoing work stoppage has halted production of Boeing’s popular 737 MAX aircraft, as well as its 767 and 777 widebodies, adding further strain to its already fragile financial situation.

Earlier this month, Boeing announced its plans to reduce its workforce by 17,000 employees, constituting 10% of its global staff, and to incur $5 billion in charges.