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Deyaar axes jobs
Deyaar cuts its workforce by 20 percent after it posted a 74 percent drop in third quarter profits. Deyaar has seen better days.
October 26, 2009 3:22 by Dana El Baltaji
Dubai-based developer Deyaar on Monday reduced its workforce by 20 percent following an internal review, it said in a statement posted on the Dubai Financial Market (DFM) website.
“This rationalisation of resources has been carried out to support Deyaar’s sustained growth and maintain its commitments to customers, partners and shareholders in the most efficient possible manner,” the statement said.
The job cuts were the company’s first since the financial crisis hit the region, it explained in the statement.
“Deyaar remains confident of the soundness of its overall business development strategy, focusing on identifying emerging opportunities and continuing to deliver exceptional long-term value to its customers and shareholders,” the company added.
Last week, Deyaar posted a net profit of AED81.6 million, an 8.2 percent increase over its second quarter results, but a staggering 74 percent drop in net profit compared to the same period last year.
The company’s woes, however, don’t end there. Three of the company’s former employees – chairman (and former UAE minister), MK; Arab-American CEO, Zack Shahin; and finally an Indian executive – are facing charges of fraud at Dubai Criminal Court.
MK is accused of siphoning AED56.6 million off Deyaar.
He resigned as chairman of Deyaar in March 2008, and was succeeded by Nasser al-Shaikh. Al-Shaikh, however, didn’t last long.
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