Aracruz makes adjustments to its workforce
Aracruz Celulose is making adjustments to its own workforce in view of the effects of the global crisis that have been strongly impacting the company, with a reduction in sales and, consequently, the pace of its production activities.
Since the beginning of the crisis, Aracruz has been adopting a series of measures to reduce costs and preserve cash flow. This included the temporary suspension of expansion investments - the Guaíba II (RS) project, the purchase of land and the formation of forests for the Veracel II (BA) and Minas Gerais projects, and investments to modernize one of its production lines at Barra do Riacho (ES). The company also canceled payment of dividends and interest on shareholders' equity, among other measures.
Furthermore, contracts with suppliers and service providers were reviewed while outsourced professionals allocated to expansion projects and other initiatives that were discontinued were demobilized.
However, the persistence of adverse conditions in the world economy requires a new round of adjustments. Staff cutbacks already carried out or underway have reached about 140 employees in the administrative and operating positions in a number of locations, including the Barra do Riacho Unit in Espírito Santo and Bahia. The Guaíba Unit in Rio Grande do Sul is also undergoing adjustments, with a reduction of 37 members of its own workforce.
