MIAMI – Embraer has announced today a 4.5% adjustment to its global workforce. The measure is a step forward in response to the economic impact of COVID-19 and the canceled partnership with Boeing.
The company has said the pandemic particularly affected Embraer Commercial Aviation. The division recorded a reduction in aircraft deliveries by 75% during the first half of 2020 when compared to the same period last year.
A Much Needed Restructuring in Embraer’s Commercial Division
In a nutshell, the company’s commercial aviation business got worse. On one hand, Embraer had duplicated associated structures in expectation of the partnership with Boeing. Alas, this was terminated at the initiative of the latter.
On the other hand, the company said it did not expect a recovery of the air transport sector in the short- nor medium-term. As a result, Embraer seeks to ensure its sustainability and engineering capacity by making the aforementioned business adjustment. As the first step, it already restructured its global commercial team last month.
Embraer’s Considerations with Workers
The announced restructuring affects approximately Embraer 900 employees in Brazil. The company did look first for other measures to preserve jobs as the pandemic went on. These included collective vacations, reduced working hours, furloughs, paid leave, and three voluntary dismissal plans (VDP), in which 1,600 employees chose to participate.
Regarding the health of its workers, Embraer also reduced face-to-face work at its industrial plants. In today’s statement, the Brazilian manufacturer bid farewell to the professionals who are leaving by recognizing and appreciating their commitment.
Embraer said that it expects to overcome the current crisis. With this business restructuring, the Brazilian airframer’s goal in the long-term is to maintain the company’s competitiveness in the global market.
Featured photo: Embraer E175-E2. Photo: Embraer.