German carmaker Mercedes-Benz will put more workers on paid leave in its bus and lorry factory in Sao Paulo, local media reported Monday. With this measure, the company will remove a total of 1,800 workers from their positions for an indefinite period of time, according to Brazilian online news portal G1.
Mercedes-Benz also announced that it will start a voluntary resignation program on Wednesday as the company has an excess of 2,000 workers in the factory.
Car sales in Brazil fell 31 percent while lorry and bus sales fell by 46.3 percent in the first four months of 2016 due to an economic crisis in the country, which saw the economy contract by 3.8 percent in 2015, the worst in 25 years.
In recent months, most carmakers with factories in Brazil have announced to dismiss or lay off workers to adapt to the market.
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