Embraer slashes workforce
Massenentlassungen bei Embraer<br /> Embraer informs that as a consequence of the unprecedented crisis affecting the global economy, which also affects the air transportation industry, it has become inevitable to implement a revision to its cost structure and workforce, adjusting them to the new reality of demand for commercial and executive aircraft.
Although Embraer has its headquarters in Brazil, the Company depends primarily on export markets and on global economic performance – over 90 percent of its revenues are generated abroad. Therefore, the resiliency that the Brazilian domestic market has been demonstrating through the crisis does not significantly alter this adverse scenario.
The reduction in personnel represents approximately 20 percent of its 21,362 employees and is concentrated in the production and administrative areas, including the elimination of one layer in the management structure. The significant majority of the engineering workforce will be kept engaged in programs for development of new products and technologies, which will be kept unchanged. In light of this new scenario, Embraer has revised its revenue guidance for 2009 to US$ 5.5 billion, corresponding to 242 commercial and executive aircraft deliveries. As a result of this reduction in revenues, the Company has also revised its investment guidance to US$ 350 million for the year.