Job losses at JBS

by Editor
Friday, July 17, 2009

Brazil's JBS SA confirmed it had laid off 742 workers from three plants located in Sao Paulo state., according to Reuters.

The layoffs were part of a continuous drive for efficiency and factory modernisation, the company said.

Brazil's beef sector, which had been expanding fast with cheap credit in recent years, was hit hard by the global financial crisis as well as a decline in imports by clients in Europe and Asia.

Several companies filed for bankruptcy protection late in 2008, but the overall situation seems to be improving as liquidity in global credit markets recovers.

Because of the global recession, and also lower imports by Europe and Asia, Brazil’s beef industry has been faced with difficulties.

According to JBS its slaughtering and deboning capacity in Brazil has been pushed up by approximately 25%.

This was made possible because the company has leased five more plants and is planning to take on 3,000 workers for the plants, the report further stated.