Nakheel goes on firing spree
Nakheel follows the latest trend among developers and sacks 500 employees, approximately 15 percent of its workforce.
November 30, 2008 12:14 by kippreport
According to a press release issued by Four Communications Group, Nakheel, Dubai’s government-owned master-developer, has fired 500 employees, approximately 15 percent of its staff. A Nakheel spokesperson claims the move is a responsible action on the company’s part: “We have the responsibility to adjust our short term business plans to accommodate the current global environment. The redundancies are indeed regrettable, but a necessity dictated by operational requirements which are in turn dependent on demand,” the spokesperson said.
The decision, which was announced on November 30, comes after Nakheel scaled back its projects and reassessed the number of employees it now requires.
Although redundancies were expected in Dubai’s real estate sector, few suspected Nakheel to shed a significant number of employees. Not only is Nakheel one of the world’s largest, and high profile developers, but it is directly, and wholly owned by the Dubai government, proving that even government owned entities are not safe from the financial crisis.
Over the past few weeks, Omniyat, Damac and other developers have shed hundreds of employees; this latest spate of firings will not bode well with the growing anxiety felt among professionals throughout the emirate. –DB