Mashreq axes 175 employees amid slowdown

JOB CUTS: Mashreq has cut four percent of its workforce. (ITP Images)

Mashreq announced on Thursday that it has axed up to 175 staff, four percent of its global workforce, to reflect reduced market activity.

In a statement, the bank said: “The redundancies reflect a lower level of market activity. The affected employees were selected due to either their role being no longer viable, or as a result of performance assessments. The process has ensured that we are now a more efficient operation and can be more flexible as a business."

It declined to give an actual number to the jobs lost in the region.

Mashreq is the largest private bank in the UAE with a growing retail presence in the region including Qatar and Bahrain.

Last year it recorded a net profit of more than $517 million from a total operating income of $1,04 billion. At the end of last year, its total assets stood at $23.8 billion.

The statement added: “Mashreq has made this decision with deep regret, but has moved swiftly to respond to the challenges of the year ahead. We will be providing compensation to the affected employees, as well as advice and counsel.

“These steps are part of a strategy to maintain our strong levels of performance and profitability and remain focused on gearing the business around the needs and activities of customers.”

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READERS' COMMENTS

What about other Dubai banks?
Posted by Saeed, Dubai, UAE on Sunday 8 February 2009 at 14:39 UAE time


Do we have any resizing in other Dubai banks? Does anyone know? Why there is no stimilus package for Dubai banks?

Mashreq
Posted by Carol731, Tallahassee, Florida on Saturday 7 February 2009 at 22:17 UAE time


I rarely see mention of the added workload and stress for the remaining employees. At what point do cuts become counter productive>

Big fish v/s small fish
Posted by Ahmed on Saturday 7 February 2009 at 16:04 UAE time


Behind the all facts of global financial crisis, 4% cut the workforce is meaningful where the Banks are paying high salaries and benefits to single key position and on the other hand the bank is not in position to pay salary to its workforce, most of those from marketing & sales, although the market research and data facts identified the recession hit 2008-2009 Balance Sheets, actually the strategy makers are still there but those who given the success to brand image are burden today.

Mashreq Cutting Jobs
Posted by Sajanq8, Kuwait, Kuwait on Saturday 7 February 2009 at 00:03 UAE time


I totally agree with both Tee and Shiraj. A lot of companies are using the name of recession to cut down there workforce and the smarter onces are using the name to dealy payments to their creditors and supplier as well.

It is too bad to see thes companies who have been built up by these very same employees now firing them just to save a few tousand dollars or like Shiraj said, less than 0.1 Million out of their 500 Million profits.

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