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.

The partnership between Embraer and Boeing was established in February 2019. The move came after Boeing agreed to purchase an 80% stake in Embraer’s commercial aircraft division. However, the joint-venture ended in April, 2020. Photo: Airways files.

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.

Arjan Meijer became the new President and CEO of Embraer Commercial unit in June. Photo: Embraer.

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.