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Abu Dhabi’s Aldar Cuts Jobs, To Scale Back Ops
Firm to slash 105 jobs, 24 pct of total workforce; Says to scale down on certain functions; Co to continue focus on Abu Dhabi market
October 31, 2011 9:11 by Reuters
Abu Dhabi’s Aldar Properties plans to cut almost a quarter of its staff and scale back some of its it operations, it said on Monday, as the struggling developer tries to navigate tough market conditions.
Aldar will let go 105 people from the company, which accounts for 24 percent of its total staff, the company said in a statement on the Abu Dhabi bourse.
The builder of the Yas Marina Formula One circuit was bailed out by a $5.2 billion rescue package by Abu Dhabi earlier this year, but concerns have been raised about the government’s growing stake in the company.
As a result of the review process, some functions would be scaled back, the company said without giving further details.
Aldar also said new functions have been created.
The announcement comes just days after the developer appointed Greg Fewer, an executive at state fund Mubadala which helped bail out the developer earlier this year, as its new chief financial officer.
“We need to ensure that we have the appropriate size, structure and skills for the current and future environment and that this new structure creates more accountability and greater efficiency built around lean core teams, as well as an additional focus on key functions,” said Ali Eid AlMheiri, Chairman of Aldar Properties.
In June this year Moody’s downgraded Aldar’s credit ratings to B2 from Ba3 with outlook changed to negative, citing uncertainty over future government support for the struggling developer.
Real estate firms in UAE were hit hard by the global financial crisis in 2008 with property prices dropping by about 60 percent from its peak. (Reporting by Praveen Menon, Editing by Dinesh Nair)