More employees sent packing

More employees sent packing

Istithmar World has fired 10 percent of its workforce. Should we brace ourselves for more bad news?

January 18, 2009 1:38 by Dana El Baltaji

Istithmar World, an investment arm of Dubai World, announced today that it has laid off 13 employees, or 10 percent of its workforce. A spokesperson for the company said “In light of current external market conditions and our strategy to align resources in line with business requirements for 2009, Istithmar World has reduced its workforce…”

“We remain confident of our investment strategy for driving long-term growth and above-average returns,” the spokesperson added, “and have adjusted our short-term business plan to capitalise on the opportunities that will open up when the economic recovery begins.”

The news comes after John Laing Homes, a subsidiary wholly owned by Dubai-based Emaar Properties, announced it has fired staff over the weekend. Emaar bought the US home developer in 2006 for AED3.85 billion.

The news puts further strain on the Dubai’s economy and reputation: last month, Emaar reportedly shed 100 jobs; in November 2008, Nakheel, a government-owned developer cut 500 jobs; in October 2008, Damac Properties laid off 200 employees, or 2.5 percent of its workforce; SHUAA Capital fired 21 employees, or 9 percent of its staff; Omniyat has cut 69 jobs; and according to media reports, Tameer has notified 180 employees that December 31 was their final working day.

Other job cuts in the emirate have been reported, although many have not been confirmed.

Looks like the job cuts aren’t likely to stop anytime soon.