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.