Job losses continue in Dubai. An interesting view expressed by the group CEO in this article that lays off = substantial achievement.
Source: ArabianBusinss.com 15 October 2009
25 percent of Dubai World's UAE staff have been cut as part of a restructuring process.Dubai World said on Thursday that 25 percent of its UAE workforce has been cut as part of a major restructuring of the company aimed at saving $800m.
In all, about 15 percent of its employees worldwide have been axed as part of the plan to create "significant cost savings and increased efficiency".
Company chiefs said Dubai World's businesses were now well prepared to "thrive in both the current climate and the still uncertain future environment".
The reorganisation builds on the changes announced in June, when management of Jumeirah Golf Estates, Jumeirah Lakes Towers and the real estate activities of Dubai Maritime City moved to Dubai World real estate company Nakheel.
The company is scheduled to benefit by more than $800m in operating savings over the next three years, it said in a statement.
The total workforce managed by Dubai World companies globally has been reduced by about 15 percent to less than 70,000.
However, the reduction is around 25 percent in the UAE, largely as a result of the downturn in the real estate market in the region, but did not give an exact number.
Dubai World chairman Sultan Ahmed Bin Sulayem said: “Whilst the challenges we faced are not unique, with no global entity immune from the pressures of the world wide recession, we are confident that Dubai World and its subsidiaries are appropriately focused and properly structured to embrace the new global reality.
“Our diverse portfolio of assets around the world, together with our significant interests here in Dubai, provides us with an exciting and compelling future.
"With the reorganisation, the Group enters this next vital phase of our evolution better able to withstand all economic eventualities. Dubai World remains a testament to the vision of our government and the UAE as a whole, today and tomorrow.”
Group chief executive officer of Dubai World Jamal Majid Bin Thaniah said: “This organisational restructuring is a substantial achievement and I would like to thank all our employees and our customers for their continued loyalty through these difficult times.”