Brazil's Embraer to furlough 15,000 workers ahead of Boeing deal: union

Brazil's Embraer to furlough 15,000 workers ahead of Boeing deal: union

Brazilian planemaker Embraer SA will furlough almost 15,000 workers in January, a metalworkers union said on Thursday, ahead of a partial takeover by Boeing Co as part of a deal that still needs regulatory approval.

Embraer logo at LABACE in Sao Paulo
FILE PHOTO: The logo of Brazilian aviation company Embraer is seen during the Latin American Business Aviation Conference & Exhibition fair (LABACE) at Congonhas Airport in Sao Paulo, Brazil August 14, 2018. REUTERS/Paulo Whitaker

SAO PAULO: Brazilian planemaker Embraer SA will furlough almost 15,000 workers in January, a metalworkers union said on Thursday, ahead of a partial takeover by Boeing Co as part of a deal that still needs regulatory approval.

Boeing has agreed to buy 80per cent of Embraer's commercial plane division for US$4.75 billion, a deal approved by shareholders and the Brazilian government but which is undergoing an intensive regulatory investigation in Europe. Embraer has said it expects the deal to close in early 2020.

Embraer did not immediately respond to a request for comment.

(Reporting by Marcelo Rochabrun; Editing by Leslie Adler)

Source: Reuters

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