SAO PAULO Aug 7 Brazilian aircraft
manufacturer Embraer (EMBR3.SA) has eliminated close to 500
management and administrative jobs in a recent restructuring to
cut costs, the local metalworkers union said on Thursday.
Embraer (ERJ.N), the world's leading producer of regional
jets, confirmed the restructuring. But it declined to specify
how many jobs had been cut, citing company policy.
"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.
The Sao Jose dos Campos Metalworkers Union said the layoffs
took place on Aug. 4 and 5, and that they mainly targeted
administrative staff, engineers and technicians. The union
questioned the need for the job cuts at a time when Embraer is
producing record amounts of planes and strong profits.
"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," the union's president, Adilson
dos Santos, said in a statement.
Embraer, which said last week that its profit more than
doubled in the second quarter, would not say what prompted the
restructuring. But local newspaper O Estado de S.Paulo reported
on Thursday that the company was trying to find ways to
compensate for a weak U.S. dollar, which has hurt its revenue
in Brazilian reais.
The real BRBY has gained almost 13 percent so far this
year against the dollar, adding to a 20 percent surge in 2007.
Embraer, whose planes are priced in dollars, gets the vast
majority of its revenue from exports.
(Reporting by Todd Benson; Editing by Brian Moss)