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Embraer cuts 4,000 jobs and delivery forecast

Embraer today announced laying off nearly 4,300 workers as it slashed its 2009 delivery forecast by 28 aircraft, lowering revenue guidance for next year to $5.5 billion.

The job cuts amount to about 20% of the Brazilian commercial and business jet manufacturer's 21,362 employees. The layoffs will eliminate "one layer in the management structure" and be concentrated in production and administrative areas.

The layoff is a "consequence of the unprecedented crisis affecting the global economy", which has reduced global demand for the company's export products.

Embraer has revised revenue guidance for 2009 to US$5.5 billion and reduced its commercial and business jet delivery forecast from 270 to 242 aircraft.

The company also plans to scale back its investment account, slashing costs from US$450 million to US$350 million.

In November, Embraer released a 20-year market forecast predicting a 10% drop in demand for regional jets, which included a 60% decline for the 30- to 60-seat market sector.

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