Embraer said on Thursday it would cut 900 jobs, around 4.5 per cent of its workforce, as a result of the cancellation of its partnership with Boeing, and the ongoing COVID-19 aviation crisis.
This is in addition to the 1,600 employees who made use of the company’s various voluntary redundancy programs since the onset of the global pandemic.
“The objective is to ensure the company’s sustainability and engineering capacity,” the company said.
Embraer said it has also undertaken a number of other measures to preserve jobs, such as collective vacations, reduced working hours and encouraging staff to take leave.
However, there have been some reports, namely from the Sao Jose dos Campos metalworkers union, that Embraer has been coercing staff to accept ‘voluntary’ redundancy.
This matter is currently being investigated by Brazillian public prosecutors.
The union said it had not been involved in negotiating this latest round of involuntary layoffs.
This all comes as deliveries made by the Brazillian planemaker are down about 75 per cent year-on-year, with the company laying blame on the international COVID-19 crisis, and its devastating impact on the aviation industry.
The company’s performance has also taken a hit following a last-minute termination of a long-planned $4.2 billion merger deal with Boeing, which was cancelled by the American manufacturer back in April.