Embraer Launches Voluntary Dismissal Program for Employees in Brazil

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Embraer has announced a Voluntary Dismissal Program (VDP) for employees in Brazil. The company believes that the VDP gives the decision opportunity to the employees and offers an attractive benefits package.

Due to the challenging global aerospace scenario, Embraer has lowered its annual aircraft delivery forecast, as communicated during its second quarter earnings release on July 29th.

The company informed its employees that it will take measures to reduce costs at all of its units and businesses around the globe. As part of this process, it will be necessary to adjust the company´s administrative and operational structure.

All plan related definitions are still being analyzed and will be communicated at the end of this process, which should take a couple of weeks to complete.

Embraer believes in its perpetuity, as it works to overcome this moment. The company needs to secure its longevity and, for that, needs to maintain its financial discipline by taking immediate actions.

Recently, Embraer lowered its financial results forecast for 2016. The company‘s consolidated revenue will be lower by $200 million and is expected to be $6.2 billion. Planemaker expects delivery of 80 light and 45 large aircraft, compared to 85 and 50 originally planned.

In order to reduce the negative impact on the development of new aircraft, such as KC-390 tanker or E190-E2 jet, it is expected, that the reduction of engineering division workforce will be minimal.

Source: Embraer Statement