Move Surprises Community, Union
Brazilian planemaker Embraer has been seemingly on a roll as of
late, with a healthy order book for its larger regional aircraft
and on-track development of smaller business-class jets.
Apparently, however, not all is well at Embraer's headquarters in
Sao Jose dos Campos.
The company confirmed Friday it eliminated some 250 management
and administrative jobs this week, as part of a larger
"Embraer confirms some adjustments in its organizational
structure, affecting some management and administrative positions,
a process that is common in large industrial organizations," the
company said in a statement reported by Reuters. "Embraer informs
that it has consolidated its organizational structure by reducing
managerial positions and administrative functions, which involved a
reduction of around 250 people."
So far, the company has been mum on why the restructuring effort
is necessary. The surprise announcement comes one week after
Embraer announced it more than doubled its profit in the second
quarter of 2008, even in the face of the weak US dollar.
The Sao Jose dos Campos Metalworkers Union has a theory,
however, for why Embraer cut what the union says was closer to 500
administrative, engineering and technical positions.
"If there's no crisis, for the Metalworkers Union the only
explanation for the layoffs is that Embraer is cutting jobs to
further increase its profits," said union president Adilson dos
Santos. That sentiment was echoed Thursday by the local O Estado de
For the company's part, Embraer will say only that it "continues
to move firmly ahead in its growth process and in improving its
results, and confirms the aircraft delivery forecasts and
economic-financial projections previously announced."