In response to pressure on its output, Mercedes-Benz announced on Tuesday that it will lay off 3,600 workers in a restructure of its truck and bus chassis facility in Brazil’s Sao Paulo state.
To combat cost challenges and a shifting automotive market, the business announced it intends to outsource some of its activities in the Brazilian city of Sao Bernardo.
Mercedes-Benz announced that it will contract out the manufacturing of front axles, medium transmissions, logistics, and maintenance services, giving local firms preference.
According to a statement from the company, it will instead concentrate on its “core business,” which involves the manufacture of truck and bus chassis.
2,200 employees from the Sao Bernardo plant will be let off by Mercedes-Benz, while 1,400 others will not have their temporary contracts renewed as of December.
Sindicato dos Metalurgicos do Grande, the primary labour union for the business, reported that its executives met with Mercedes-board Benz’s on Tuesday afternoon and that the company’s representatives asked for the commencement of negotiations regarding the choice.
On Thursday, the union’s board will meet with the workforce.
