Embraer has announced a plan to cut its workforce in Brazil through a so-called Voluntary Dismissal Program (VDP) in an effort to save some $200 million. Citing a “challenging global aerospace scenario,” the company referred to its recent plans to cut its delivery forecast for next year, most prominently in its business jet division. An Embraer spokesman told AIN that the program will apply to all its divisions, including commercial and military.
“The company informed its employees that it will take measures to reduce costs at all of its units and businesses around the globe,” the company said in a statement. “As part of this process, it will be necessary to adjust the company's administrative and operational structure. Embraer has announced a Voluntary Dismissal Program (VDP) for employees in Brazil. The company believes that the VDP gives the decision opportunity to the employees and offers an attractive benefits package.”
The Brazilian airframer added it continues to analyze “all plan-related definitions” and that it would communicate details to employees in “a couple of weeks.”
“Embraer believes in its perpetuity, as it works to overcome this moment,” it concluded. “The company needs to secure its longevity and, for that, needs to maintain its financial discipline by taking immediate actions.”
However, the Sao Paulo-area steelworkers’ union has tried to connect the move to the recent $200 million second-quarter charge the company took in reaction to a U.S. Justice Department corruption investigation. “Embraer cannot throw the cost of this corruption case onto the backs of the workers,” the Sindicato dos Metalúrgicos said in a statement. Embraer plans to meet with union leaders to discuss the matter on Wednesday.