On the 26th of September, 2016, Brazilian plane manufacturer Embraer announced that it would let go almost 8% of its staff via a voluntary buyout program. Such a decision was made due to a decreased demand in the company’s jets, as well as a decrease in the number of defense contracts won.

According to the company’s representatives, the Brazilian planemaker has already accepted the resignation of 1,463 of its workers. According to union representatives, metalworkers from Sao Jose dos Campos make up almost half of the workers leaving.

The job cuts, coupled with temporary leaves starting in October, will bring down the labor costs that have increased together with impressive inflation rates that took a toll on Embraer’s profitability in 2015-2016.