4,000 jobs to go at Calçados Reichert
04/06/2007
Calçados Reichert, one of Brazil's largest and most traditional footwear manufacturers is to close all 20 of its factories operating in the Vale do Sinos region and other regions of the state of Rio Grande do Sul, resulting in approximately 4,000 job cuts. The news was confirmed by Ernani Reuter, director of the company, following months of speculation regarding the future of the group. Mr Reuter stated, "The closure process, which does not include our tannery or the last factory, is expected to be completed by the end of July."
The decision to cease footwear manufacturing was said to be due to pressure caused by the low US$ exchange rate and high taxes.
The factory closures will also affect Reefer Calçados, another shoe manufacturer in the group which has already had its workforce reduced by 50% from 1,300 to just over 600 in the past two years.
Founded as a shoe manufacturer and trader in 1935, Calçados Reichert went on to set up a tannery and other related businesses and became one of the country's largest exporters in the sector, and still ranks amongst the 250 largest exporters of all productive sectors in Brazil. In 2006, the company exported shoes worth $85.1 million, a 15.6% increase on the previous year.
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