February 4, 2009
Brazil's Perdigao puts 2,300 workers on paid leave on shrinking global chicken demand
One of Brazil's largest food companies, Perdigao SA (PDA), said Tuesday (February 3) it will put 2,300 workers on paid leave next month as domestic and international demand for chicken slows.
The workers were based at a chicken meat-packing plant in Brazil's southern-most state, Rio Grade do Sul. Chicken meat production will stop as of March 23 at the facility and start again on April 22, Perdigao said.
Brazil's economy is showing signs of a rapid slowdown as it responds to tight credit and declining demand for its commodities and industrial goods abroad.
Last week, rival food company Sadia SA (SDA), said it will cut 350 administrative jobs to reduce costs by BRL44 million.
Perdigao shares were down 0.66 percent to 30.21 Brazilian reals (US$13.03) on the Brazilian stock exchange, or Bovespa, in mid-afternoon trade.
Perdigao's American Depositary Receipts were down 1.88 percent to US$26.10 on the New York Stock Exchange at the same time.
