Embraer, a Brazilian aircraft producer, announced 900 layoffs, as COVID-19 and the company’s termination of the partnership with Boeing has reportedly incited a 4.5% reduction to its global workforce.
Embraer Commercial Aviation experienced a 75% decrease in aircraft deliveries during the first half of 2020, the company said on September 3, 2020. According to the manufacturer, the preparations for its partnership with Boeing further deteriorated Embraer’s circumstances.
“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,” Embraer stated in the press release.
As of September 4, 2020, 1,600 of the company’s employees accepted voluntary dismissal plans, while some were furloughed or took paid leave.
The partnership between Boeing and Embraer was established to design, build, and sell commercial aircraft after the US aircraft manufacturer agreed to an 80% stake in Embraer’s commercial aircraft division. The joint project was supposed to close in June 2020 but was terminated by Boeing in April of the same year due to the pandemic.
Embraer is a Brazilian aerospace manufacturer that produces commercial, military, business, and agricultural aircraft.