Embraer to Cut Global Workforce by 4.5 Percent, 900 Employees in Brazil Impacted
Embraer announced on Thursday that they will reduce their global workforce by 4.5% with approximately 900 employees in Brazil impacted. The aerospace manufacturer attributes the downsizing to the impacts of COVID-19 and cancellation of Boeing partnership.
On Thursday (September 3, 2020), Embraer announced that they will downsize their global workforce by 4.5%, including 900 employees in Brazil, largely attributable to the impact of COVID-19 and the cancellation of the planned Boeing partnership. The company’s realignment goals are to ensure their sustainability and engineering capacity while navigating the unprecedented downturn in the global aviation industry. Embraer’s Commercial Aviation division has been most impacted as the unit experienced a 75% year-over-year reduction in deliveries during the first half of 2020.
According to the company, the impact of the pandemic was exacerbated by the duplication of structures associated with the separation of the company’s commercial aviation business, in preparation for the now-terminated Boeing partnership. As the air transport sector is not expected to recover in the short or medium term, Embraer has implemented a series of measures to preserve jobs including collective vacations, reduced working hours, furloughs, paid leave and three voluntary dismissal plans (VDP). Approximately 1,600 employees in Brazil have participated in the VDPs.
Headquartered in São José dos Campos, Brazil, Embraer is a global aerospace company with businesses in commercial, executive, defense & security and agricultural aviation. The company designs, develops, manufactures and markets aircraft and systems. Embraer also provides after-sale services and support to customers worldwide.