- Brazilian planemaker Embraer (NYSE:ERJ) says it will cut nearly 1,500 employees, or ~8% of its workforce, through a voluntary buyout program, in a bid to cut costs amid weak business jet sales and downsized defense contracts.
- ERJ's defense unit, its fastest-growing division just a few years ago, has been forced to scale back major programs as Brazil's federal budget crisis hit military spending.
- Brazilian newspaper O Globo reported over the weekend that ERJ is preparing a potential sale of the defense unit, which the company denies.