P.M. BRIEFING : French Firm to Cut Brazil Staff
The French chemical and pharmaceutical giant Rhone-Poulenc SA said today it will slash 3,500 jobs from its Brazilian work force due to government austerity measures that are crimping business activity there.
Voluntary layoffs are being conducted at the Sao Paolo-based Rhodia SA, which makes chemicals, fibers and medical products, a company spokeswoman said.
“People that leave simply won’t be replaced,” she said.
About 2,000 workers have already left since Brazilian President Fernando Collor de Mello instituted his anti-inflation austerity program last year. Another 1,500 are expected to go over the next two years, the spokeswoman said.
Rhone-Poulenc’s first-half profits were off 13% from a year ago, partly due to a $58.7-million loss at Rhodia. It was the first loss recorded by the Brazilian division, which had been a jewel in Rhone-Poulenc’s crown during the 1980s.
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