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.