Embraer to Cut Staff by 900 as Coronavirus, Cancellation of Boeing Accord Hit Bottom Line
September 03 2020 - 11:23AM
Dow Jones News
By Jeffrey T. Lewis
SAO PAULO--Brazilian aerospace company Embraer SA said Thursday
it will reduce staff by about 900 positions, or about 4.5%, because
of the cancellation of its partnership with Boeing Co. and the
impact on the global economy of the coronavirus pandemic.
Embraer's commercial aviation division, which makes passenger
jets seating around 100, has been particularly hard hit after
suffering a 75% decline in deliveries in the first half of 2020
compared with a year ago, according to the company.
Boeing's decision in April of this year to cancel the planned
partnership on commercial jets, citing a failure to agree to final
terms to the link-up, made Embraer's situation worse because of the
Brazilian company's efforts to separate the commercial aviation
unit in preparation for the closing of the deal, as did the outlook
that the airline sector won't recovery quickly from the
pandemic.
Embraer had already taken several measures to try to save jobs
and reduce costs, including collective vacations, reduced working
hours, paid leave and three voluntary dismissal plans, the company
said. About 1600 employees accepted the company's voluntary
dismissal offers, Embraer said.
Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com
(END) Dow Jones Newswires
September 03, 2020 11:08 ET (15:08 GMT)
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