Mercedes-Benz to lay off 3,600 workers in Brazil
SAO PAULO (Reuters) – Mercedes-Benz mentioned on Tuesday it should fireplace 3,600 staff in a restructuring of its truck and bus chassis plant in Brazil’s Sao Paulo state amid pressures on its manufacturing.
The corporate mentioned it plans to outsource components of its operations within the Brazilian metropolis of Sao Bernardo in an effort to confront price pressures and a altering vehicle trade.
Mercedes-Benz mentioned it should outsource the manufacturing of entrance axles and medium transmissions, in addition to logistics and upkeep providers, with the precedence given to native firms.
In the meantime, it should focus as an alternative on its “core enterprise,” which incorporates the manufacturing of bus chassis and vans, the corporate mentioned in a press release.
Mercedes-Benz will lay off 2,200 employees from the Sao Bernardo plant, whereas an extra 1,400 staff won’t have their non permanent contracts renewed as of December.
The principle union for the corporate’s employees, Sindicato dos Metalurgicos do Grande ABC, mentioned its leaders met with Mercedes-Benz’s board on Tuesday afternoon, and that the corporate’s representatives requested the beginning of negotiations concerning the choice.
The union’s board will maintain an meeting with employees on Thursday.
(Reporting by Andre Romani; Enhancing by Marguerita Choy)
