More Nakheel job cuts amid restructuring plan

Sunday, 13 June 2010 1:18 PM

Nakheel, the property unit of Dubai World, has made dozens more staff redundant in a fresh round of job cuts, Arabian Business has learned.

The bulk of the redundancies, which were staggered over the last week, affected administrative posts, a source close to the company said.

It is thought at least 30 staff have been laid off, the source said. It is the latest in a string of cutbacks for the developer, which laid off 500 staff in November 2008 at the peak of the global financial crisis, and a further 400 in June last year.

State-backed Nakheel is restructuring $10.5bn of financial liabilities and has asked trade creditors to wait five years to receive full payment after falling behind on its bills.

The Dubai government in March pledged to pump $8bn in cash into the indebted property unit, to help it pay contractors and suppliers and complete its projects.

Nakheel on Sunday confirmed redundancies, but declined to say how many jobs had been cut.

“As part of the restructuring process Nakheel will continue to readjust its current business objectives to accommodate current market conditions,” it said in a statement.

“In doing so, the company also evaluates resource restructuring to ensure efficiency and optimization of skill and talent.”

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Posted by: ExpatHog Wednesday, 16 June 2010 9:15 AM[UAE] - UAE

Your comment seems to indicate that Nakheel have not followed the correct procedure? I think over the past 18 months employers here have had their reputation further tarnished by how they have treated their employees when they no longer need them which will make it harder to hire people again. That said no one is questioning the management of these businesses from their inception in the early days and the leadership that took them to where they are today.Some of these "experts" and "leaders" have a lot to answer for , poorly researched projects , lack of vision in creating a sustainable property business that is not reliant purely on sales but has recurring long term income lines. There is always a human capital cost in downturns but with a correct and realistic business model this would have been less harsh than today.

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Posted by: ExpatHog Tuesday, 15 June 2010 11:39 AM[UAE] - UAE

Sadly any organisation in Nakheels situation has to act in this way , it happens all over the world not just here.Perhaps it should all have been done earlier in the restructuring.Its not nice but its life and could or has happened to all of us at soem stage .I do however hear that they are being laid off under government employment terms of contract which is curious as I thought that Nakheel were a private sector organisation;i.e. not sovereign.............

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Posted by: Abdallah Tuesday, 15 June 2010 10:36 AM[UAE] - UAE

Companies cannot be blamed for making people redundant as there is simply no work. It is a part of corporate life, and we have to take the good with the bad. I have been there before back in 92 while working in the US, and know how devastating to a family a layoff can be. I recovered and I hope everyone else recovers. "It's a recession when your neighbor loses his job. It's a depression when you lose your own." ? President Truman

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Posted by: Fairman Monday, 14 June 2010 3:24 PM[UAE] - UAE

Correction!! Nakheel has terminated employees contracts (The cheaper option) They have NOT made any redundancies.

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Posted by: Lady Muck Monday, 14 June 2010 11:01 AM[UAE] - United Arab Emirates

What about the job losses at DIFC last week - that has gone quietly unreported - so sad

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