More job cuts

More job cuts

Dubai World has announced it axed 100 jobs. Blame the financial crisis, again.

February 11, 2009 1:43 by Dana El Baltaji

Dubai World, a government-owned, Dubai-based company announced on Tuesday it fired 100 employees because of corporate restructuring and the financial constraints caused by the global economic downturn, reports AME Info.

The employees were mostly mid- and lower-level staff. It is unclear in which offices the Dubai World portfolio includes DP World, Jafza, Nakheel, Dubai Maritime City, Dubai Multi Commodities Center and Istithmar World.

In spite of the job cuts, Dubai World insists it the Group remains strong, and is well prepared to tackle the challenges of the financial crisis.

In January 2009, however, Istithmar World announced it axed 10 percent of its workforce in a bid to cut costs. In spite of the conglomerate’s insistence that its fundamentals remain strong, it is unclear if Dubai World, or any of its companies will be announcing more job cuts.

The news comes only a day after the government released a statement claiming that job cuts in the emirate has not resulted in a population decrease. According to the government’s records, the number of residents leaving Dubai has increased by 86 percent to 54,684. The Dubai’s Naturalization and Residency Department also said, however, that the government has issued 88,423 residency visas during the same time period, reports AME Info.

If Dubai World, one of the emirate’s most established conglomerates, with access to government’s funds, is firing staff, this can’t bode well for other companies in the Dubai.

Tags: Dubai World, Dubai's Naturalization and Residency Department, Istithmar World, job cuts

Previous Article Cover Story Next Article

Vox populi: The voice of the people
February 11, 2009 | Cover Story

Ah Darwin, you’re not so blasphemous after all
February 11, 2009

More on Cover Story

All Cover Story

5 Comments

Kevin on February 11, 2009 7:46 pm

This does not bode well for ANY SECTOR in Dubai. The global economic crisis will impact each and every single person; to claim otherwise is just plain naive and ridiculous. Unlike other gulf nations, Dubai does not have the precious petro-dollars to protect it, its trivial tourism for naive tourists and corrupt chaotic real estate sector cannot sustain its battered economy. One must brace oneself for the worst and have an alternative destination, sooner rather than later.
Huda on February 13, 2009 10:41 am

Or perhaps it means their HR system was completely wrong.. I know many of these companies just hire and hire, and a percent of the people they hire, were probably not needed in the first place.
Frustrated graduate! on February 15, 2009 10:45 am

I’m sure it’s a bigger number than that – both for the number of people ‘made’ redundant, and the number of people leaving Dubai. As for the statistics, it would be interesting to know what percentage of visas issued are actually visa renewals.
Meera on February 17, 2009 12:39 pm

The reason for the crisis is any one of the following;
a) Irresponsible way of expansion, which is not sustainable
b) Want to be bigger, larger, taller not smarter, clever, etc
c) Not practicing corporate governance
d) Finally greediness
Hasan on February 23, 2009 4:02 pm

Well i dont understand why is it always the people from lower and middle management fired, well i beleive that if one top management person is fired then there will be no need to fire 10 to 15 lower or middle managent employess, Hence if companied need to layoff they should start from the top as the actual expense is there.