Mercedes-Benz said on Tuesday it will lay off 3,600 employees in a restructuring of its truck and bus chassis plant in the Brazilian state of Sao Paulo due to pressures on its production.
The company said it plans to outsource some elements of its operations to the Brazilian city of Sao Bernardo in an effort to deal with rising costs and a changing auto industry.
Mercedes-Benz said it would subcontract production of front axles and mid-drives, as well as logistics and maintenance services, giving priority to local companies.
In the meantime, the company will focus on its “core business,” which includes bus and truck chassis production, the company said in a statement.
The car company will lay off 2,200 workers at the Sao Bernardo plant, while not renewing temporary contracts from December for another 1,400 employees.
The company’s main workers’ union, Sindicato dos Metalurgicos do Grande ABC, said that its leaders met with the Mercedes-Benz board of directors on Tuesday afternoon, and that company representatives requested the start of negotiations. about the decision.
The union leadership will hold a meeting with the workers on Thursday.