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Discuss this article (2 Comments)Up to 100 Omniyat jobs at risk
by This email address is being protected from spam bots, you need Javascript enabled to view it on Sunday, 23 November 2008
Dubai-based developer Omniyat Properties has put the brakes on up to six future projects, which could result in the loss of up to 100 jobs, sources close to the company told Arabian Business on Sunday.
Sources said Omniyat was now just concentrating on its 10 ongoing projects as the global financial crisis hits demand for real estate in the UAE.
It is understood that a full assessment on current staffing levels in underway, with staff brought in for future projects facing redeployment or in some cases redundancy.
When contacted by Arabian Business, Alex Andarakis, managing director of sales and marketing, said: "New projects will be brought to the market as conditions become more conducive. It is time for a realignment of resources towards the current priority, which is the delivery of ongoing projects."
The news comes just weeks after Dubai-based developer Damac announced it planned to lay off 200 employees and Emaar Properties and Nakheel said they were reviewing staffing levels in light of the current economic climate.
READERS' COMMENTS
Posted by Zack, Dubai, UAE on Sunday 23 November 2008 at 22:22 UAE time
I agree with Alex...they spent millions and millions on marketing to make a name for themselves without even delivering a single project. And now they have even removed the IT functions from their "Bays Water" project which was sold in the market as a smart building.
Up until couple of months ago they had hired people from overseas to fill in positions. these people left their existing jobs to join Omniyat and have been over night laid off.
Posted by Alex, Dubai on Sunday 23 November 2008 at 19:23 UAE time
How can ANY company, whether it be in the US, UK or UAE, announce close to a dozen projects, without one successful project completed?
Omniyat exemplifies many organizations of the current times, that have "run before they could walk", leveraged themselves 100x over through the use of derivative products, and counted on "luxury branding" to get them through.
The reality is that, with 160 employees, Omniyat is cutting more than half of its work force. Majority of these are highly-skilled people, who have left their countries in the past few months, in the hopes of helping Omniyat build its projects.
The current situation, when it subsides sometime during the next decade, will be a great lesson for leaders of organizations such as Omniyat..
..successful organizations must act in the now, have a robust balance sheet, and focus on delivering projects instead of paying absurd fees to architects for projects that will never be created.
Omniyat, my word of advice: focus on getting your current projects on budget and on time; then and only then, can you concentrate on taking over the world.
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