Citing the impact of the COVID-19 pandemic on the global economy, and the cancellation of its partnership with Boeing, Embraer has announced a 4.5% adjustment to its global workforce, affecting around 900 employees in Brazil. The OEM said its objective in making this move was to ensure its sustainability and engineering capacity.
The pandemic particularly affected Embraer’s commercial aviation business, leading to a 75% reduction in aircraft deliveries during the first half of 2020 as compared to the same period in 2019. Embraer added that “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 which was terminated at the initiative of Boeing, as well as the expectation that the air transport sector will not 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 (VDPs). 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 VDPs in Brazil.
The company added that it “recognises and appreciates the commitment of those professionals who are leaving the organisation and counts on the commitment of all employees to overcome the current crisis and maintain the company’s competitiveness in the global market”.