Embraer announced the dismissal of 900 employees at its factories in Brazil, which will join the 1,600 who joined the three voluntary dismissal programs. The company has 20,000 employees in Brazil and abroad.
According to the company, “Embraer adopted a series of measures to preserve jobs such as collective vacations, reduced working hours, lay-offs, paid leave and three plans for voluntary dismissal. It also reduced on-site work at industrial plants with the objective of ensuring employees’ health and guarantee business continuity “.
In addition to the covid-19 pandemic, which caused the demand for aircraft to collapse by 75%, added to the losses from the partnership with Boing, which required the separation of the commercial arm at a cost of US $ 485.5 million.
Partnership only brought losses
The joint venture with Boing was once a bet on the company’s survival, against competitors such as Airbus and Bombardier.
The end of the partnership with the American company worsened the situation of Embraer, which had just invested US $ 1.75 billion in the development of three E2 aircraft; even considered the best in the category, with the pandemic most of the global fleet is on the ground.
From April to June, Embraer had a net loss of R $ 1.683 billion (in the same period in 2019, recorded a profit of R $ 26.1 million).
Check out the Embraer statement
“Embraer today announced an adjustment of 4.5% of its total workforce, which corresponds to around 900 employees in Brazil. The measure stems from the impacts caused by Covid-19 on the global economy and the cancellation of the partnership with Boeing. The objective is to ensure the company’s sustainability and its engineering capacity.
In addition, the situation worsened with the duplication of structures to meet the separation of commercial aviation, in preparation for the partnership not implemented at the initiative of Boeing, and the lack of expectation of recovery in the air transport sector in the short and medium term. […]
The company recognizes and appreciates the commitment always shown by the professionals who leave the organization at this time. And it counts on everyone’s commitment to overcome the current serious crisis and keep the company competitive in the global market. ”