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Philco Dismisses 800 Workers in Manaus Due to Decline in TV and Microwave Sales. Company Claims Restructuring and Union Negotiates Benefits.
Britânia Eletrodomésticos, the parent company of the Philco brand, announced the dismissal of 800 workers from its manufacturing unit located in Manaus (AM), in a move attributed to the decline in sales of televisions, microwave ovens, and air conditioning units in 2025. The measure, according to the company, is part of a restructuring process in light of unmet growth targets for the year.
Cut Affects About 30% of the Local Workforce
According to Valdemir Santana, president of the Metalworkers Union of Amazonas (Sindmetal-AM) and CUT-AM, the number of layoffs represents approximately 30% of the total employees at Philco’s manufacturing unit in Manaus. The justification presented by the company was the low demand for certain products, especially televisions and microwaves.
“It was somewhat atypical. Competitors did not take such drastic measures,” Santana stated. “Although the market showed signs of slowing down, no other manufacturer made mass layoffs like this.”
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Sector Sales Show Stability, Not Contraction
According to data from the National Association of Manufacturers of Electric and Electronic Products (Eletros), television sales in Brazil between January and May 2025 grew by 0.3% compared to the same period the previous year. For the complete first half, the expectation is for a 1% growth, signaling stability in the sector — which makes Philco’s decision even more surprising for the market.
Company Confirms Cuts and Talks About Readjustment to Production
In an official note, Britânia Eletrodomésticos stated that the decision is due to the failure to achieve the projected growth for the home appliances category in 2025, especially seasonal products. “In light of this scenario, it was necessary to adjust the workforce,” it informed.
The company emphasized that the cuts pertain only to the Manaus plant and that the other units — such as the headquarters in Curitiba (PR) and the production center in Joinville (SC) — will not be affected.
The last mass layoff by the company had occurred during the COVID-19 pandemic when the consumption of home appliances plummeted in Brazil.
Union Negotiates Benefits Package for Those Laid Off
Layoffs began this Monday (14), at the union’s headquarters. According to Valdemir Santana, an agreement was reached with the company for a package that includes maintaining the health plan of those dismissed until the end of August and distributing food baskets: three for each laid-off worker and four in the case of employees with more than two years at the company.
In addition, in the event of future rehire, the laid-off workers will have priority in the selection process.
Heated Job Market May Facilitate Reemployment
Despite the negative impact of the mass layoffs, the job market in the Manaus Industrial Pole remains heated. According to Sindmetal-AM, the region currently records the highest employment level in recent years, with about 132,000 formally hired workers — the highest number since 2012.
“The region is in need of qualified labor. These workers should quickly find new jobs,” Santana estimated.
Philco Remains Among the Largest Employers in Amazonas
Philco is among the ten largest employers in the Manaus Free Trade Zone. The company is one of the main manufacturers of home appliances in the country and, according to industry sources, has been facing specific difficulties in product distribution, particularly televisions, which have been maintaining high inventory levels since the end of last year.
The internal crisis at Philco also reflects the seasonality of the Brazilian market, which is heavily dependent on specific commercial dates and the availability of credit for the consumption of durable goods.
Company Note Mentions “Targeted Restructuring”
At the end of the official note, Britânia Eletrodomésticos stated that it “remains committed to valuing its teams” and that “the recent actions are part of a targeted restructuring process compatible with production in the region.” For strategic reasons, the company did not disclose the total number of employees by unit.
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