More Nakheel job cuts amid restructuring plan

Developer declines to specify number; dozens of mainly admin roles believed lost.
By Joanne Bladd
Sun 13 Jun 2010 01:18 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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