Embraer cut jobs as aviation demand falls

Embraer announced it will cut 900 jobs, or around 4.5 per cent of its global workforce.

The plane manufacturer said the measure stem from the impact of the Covid-19 pandemic on the global economy and the cancellation of the proposed partnership with Boeing.

The objective is to ensure Embraer’s sustainability and engineering capacity, a statement added.

The pandemic particularly affected Embraer Commercial Aviation, which experienced a 75 per cent reduction in aircraft deliveries during the first half of 2020 as compared to the same period last year.

The situation worsened as a result of the duplication of structures associated with the carve out of the company’s commercial aviation business in preparation for the partnership Boeing.

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At the same time, there is no expectation that the air transport sector will recover in the short- or medium-term.

Since the beginning of the pandemic, Embraer has adopted a series of measures to preserve jobs, including collective vacations, reduced working hours, furloughs, paid leave, and three voluntary dismissal plans.

The company has also reduced face-to-face work at its industrial plants with the aim of ensuring the health of employees and business continuity.

Around 1,600 employees chose to participate in the voluntary dismissal plans in Brazil.

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