Embraer to cut workforce as it deals with pandemic and Boeing U-turn

© Embraer

Embraer has announced it is to shed approximately 900 jobs, approximately 4.5% of its current workforce in a restructuring move. The Brazilian planemaker is struggling to deal with the dual setbacks of the COVID-19 pandemic and Boeing’s cancellation of its deal with the commercial aviation arm of the company.

Deliveries of commercial jets have fallen by 75% compared to this time last year. Embraer is also facing controversy as public investigators begin to look into alleged coercing of staff to accept voluntary redundancy. According to Reuters news agency, the metalworkers union in Sao Jose dos Campos, where Embraer is based, said in a statement that employees are accusing Embraer of coercing them to join the program, the deadline for which was Tuesday, September 1. The union said it had not been involved in negotiating the layoffs, which it equated to firings, blaming the company’s financial problems on its failed merger with Boeing and not the pandemic.

Embraer confirmed in a statement that since the onset of the pandemic, there have been three voluntary redundancy programs and redundancy has been accepted by around 1,600 employees. Embraer also said it had instigated other measures to protect, including collective vacations, reduced working hours and paid leave.

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