By Joanne Bladd
EXCLUSIVE: DIT Group set to stop operations, all 40 employees lose their jobs.
Dubai’s DIT Group on Monday confirmed the publishing house will close down all its operations at the end of April.
Rumaiz Mohideem, acting general manager and head of finance at DIT Group, told Arabian Business all 40 of the firm’s employees were laid off on Sunday.
“We are ceasing operations in total across the whole group, the entire thing; the publishing, the events and the online operations completely,” he said.
The move confirms DIT Group, the publisher of Forbes Arabia, as the first significant publisher in Dubai to shut its doors amid the global downturn.
The details of employees’ redundancy packages were yet to be confirmed by DIT’s parent company, Dabbagh Group, Mohideem said.
“Nothing has been confirmed yet [on redundancy deals]. Our parent firm is planning a compensation package, but that’s a head office decision.”
Mohideem said low advertising sales were not wholly to blame for the firm’s closure and hinted the move was part of a wider shake-up at DIT’s parent firm Dabbagh Group.
“The decision came from our head office. It [advertising] is not the only reason, in terms of the economy, that is not the real reason.
“Head office is part of a large group, so it is their decision to close shop at any of their firms.”
A source at DIT said that staff had known redundancies were likely, but were surprised to see the firm fold completely.
“We knew that it had been in the works for quite some time,” the source said. “It’s not a massive shock but it is unfortunate as we felt the magazines were doing quite well in the market.”
The news follows a string of job cuts among UAE publishers, many of which have been linked to the region’s weakened advertising market.
Emap Middle East, the owner of MEED and AME Info, last month laid off 19 of its 160 employees, while ITP cut 60 jobs earlier this year.
Once a giant and now a rubble. Who's to blame for all this? The employees have no fault of theirs to be sacked. Al Dabbagh Group is a big name, they should have sustained the publishing house, 16 years old, even if it was incurring losses. Rule of the game, "Lose but Never Back Out."
Just today morning we heard the news that confidence is returning to the business community in Dubai and here we are seeing axing of employees. Can't a 16 years old publishing house retain employees? I think recession is still very well on in Dubai.
It has now been confirmed that DIT has now closed, their offices will be closed as off April 30th, and will no longer operate. All staff have been notified and will work till April 30th, and then get 3 months paid salary as redundancy pay.
You cannot Back Out when the going gets tough. Imagine the team which was working on this title for long time Hope they would be able to find some thing better very soon. Insha Allah and my sincere prayers
DIT has been on the slide since 2001. A few laughable attempts at reviving the company and questionable practices did nothing to help them out. Another waste of time bunch of magazines we can all forget about.
We thought after His Highness Sheikh Mohammed spoke with Media there were news all over the newspapers that investors confidence has been boosted and things will start improving... But i guess this news shatters the end user's confidence who are suffering not only because of job lossess but also loss in property prices. Please hold o Folks don't be in a hurry to purchase property.
For me DIT was not doing well for the last few years. for example PC magazine (Arabic) became an outdated in addition to uncountable spelling mistakes. In the other hand, FORBES is unlike PC magazine, and I hope it will continue with another publisher very soon. Hope that all staff will have another chance and challenge and hope to them successes in managing them self and their families.
The company was run down by a string of lousy clueless managers. One of the company's short-lived GMs ripped off the company dearly in the early 2000s, another doubled salaries while the company was laughingly under performing in the 1990s. Indeed it should have been shuttered before 2000. Their accumulative losses must have exceeded Dhs 70 million by now.
It is unfortunate when any businesses in our industry fail. Especially the workers and their families. Forbes Arabia was a good title. Any word on who will be picking it up? Greg Millard
Another mediocre publishng company shuts down. In the bid to copy paste everything written in international magazines and securing mindless advertising, the editors of the these magazines forgot one thing, attracting readership!