(MENAFN) German automaker Mercedes Benz said it had cut 500 jobs at its Brazilian plant in Sao Bernardo dos Campos near Sao Paulo and placed 7,000 workers on short-term leave, The Peninsula Qatar reported.
A spokesman said the 7,000 jobs were spread across all areas of production and the workers would have to take compulsory leave between June 1 and 15. The plant employs 10,500 to produce vans and buses.
The layoffs come amid a deep slowdown in Brazilian auto and vehicle sales, with the economy in a fifth straight year of low growth with a contraction of around 1.0 percent forecast this year.
The Brazilian government has reacted to the slowdown by raising interest rates to quell rising inflation, which has made credit for large-ticket purchases such as cars more expensive.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.