Embraer says that "as a consequence of the unprecedented crisis affecting the global economy, which also affects the air transportation industry, it has become inevitable to implement a revision to its cost structure and workforce, adjusting them to the new reality of demand for commercial and executive aircraft".
Although Embraer has its headquarters in Brazil, the company depends primarily on export markets and on global economic performance – over 90% of its revenues are generated abroad. Therefore, the resiliency that the Brazilian domestic market has been demonstrating through the crisis does not significantly alter this adverse scenario.
The reduction in personnel represents approximately 20% of its 21,362 employees and is concentrated in the production and administrative areas, including the elimination of one layer in the management structure. The significant majority of the engineering workforce will be kept engaged in programmes for development of new products and technologies, which will
be kept unchanged.
In light of this new scenario, Embraer has revised its revenue guidance for 2009 to $5.5 billion, corresponding to 242 commercial and executive aircraft deliveries. As a result of this reduction in revenues, the company has also revised its investment guidance to $350 million for the year.
The DoD has changed its structures and is been increasing efforts to facilitate access to loans by companies interested in working with artificial intelligence, advanced materials and semiconductors, biotechnology and quantum science.
India has approved millions of dollars in new military purchases, most of which will go to public sector companies.
The main obstacles to overcoming risks in the region are a lack of a strong cybersecurity culture and inadequate funds to invest in this domain given a widespread Chinese presence in the region.
MBDA is adapting to supply chain pressures as the Russian invasion of Ukraine leads to increased demand for armaments.
Despite the additional funding promised this week, the UK armed forces still look set to face cutbacks, and maintaining international commitments to AUKUS and GCAP may limit the options for other programmes.
This week on the Shephard Defence Podcast, senior naval reporter Harry Lye and military training & simulation reporter Norbert Neumann chat with Professor John Louth.
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