Embraer adjusts structure in response to COVID-19 impacts, cancelation of Boeing partnership

Embraer Press Release | September 3, 2020

Estimated reading time 2 minutes, seconds.

Embraer has announced a 4.5 per cent adjustment to its global workforce, which corresponds to approximately 900 employees in Brazil. The measure stems from the impacts caused by the COVID-19 pandemic on the global economy and the cancellation of the company’s partnership with Boeing. The objective is to ensure Embraer’s sustainability and engineering capacity.

E190-E2 in flight
Earlier this year, Boeing terminated an agreement to acquire an 80 per cent ownership stake in Embraer’s commercial airliner business. This, coupled with the COVID-19 pandemic, has greatly impacted Embraer Commercial Aviation. Embraer Photo

The pandemic particularly affected Embraer Commercial Aviation, which experienced a 75 per cent reduction in aircraft deliveries during the first half of 2020 as compared to the same period last year.

The situation worsened as a result of the duplication of structures associated with the carve out of the company’s commercial aviation business in preparation for the partnership which was terminated at the initiative of Boeing, as well as the expectation that the air transport sector will not recover in the short- or medium-term.

Since the beginning of the pandemic, Embraer has adopted a series of measures to preserve jobs, including collective vacations, reduced working hours, furloughs, paid leave, and three voluntary dismissal plans (VDP). The company has also reduced face-to-face work at its industrial plants with the aim of ensuring the health of employees and business continuity. Around 1,600 employees chose to participate in the VDPs in Brazil.

The company recognizes and appreciates the commitment of those professionals who are leaving the organization and counts on the commitment of all employees to overcome the current crisis and maintain the company’s competitiveness in the global market.

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