Brazilian aircraft maker Embraer on Thursday announced the dismissal of 4,000 employees, about 20 percent of its 21,362 workforce.
The company attributed the dismissals to the "unprecedented crisis" affecting the global economy, particularly the air transportation sector.
The company said a review of its costs and personnel had become "inevitable" in order to adjust to the new reality demand for commercial and executive aircraft, Xinhua reported.
Embraer said it depends almost completely on the international market -- over 90 percent of its income originates from exports.
The dismissals will occur mainly in the operational and administrative sectors, and will include the elimination of an entire hierarchic level in the company's management structure.
According to Embraer, most of its engineering personnel will keep working on the development of new products and technologies and these projects will not be affected by the layoffs.
Due to the global financial crisis, the company also reduced the number of aircraft it plans to sell in 2009 from 270 to 242.
The company's income in 2009 is expected to fall to 5.5 billion U.S. dollars from the earlier projected 6.3 billion dollars. Investment for the year has also been reduced to 350 million dollars from 450 million dollars.