Nakheel scales back projects, announces job cuts
By Saifur Rahman, Business Editor GULF NEWS Published: November 30, 2008
Dubai: Dubai’s real estate master developer, Nakheel, on Sunday said it has made 500 people (15 per cent of its global workforce) redundant while scaling back projects, as the market slump bites into Dubai's fast-growing real estate market.
"Dubai’s master developer, Nakheel, announced on Sunday 30 November 2008 that it was scaling back work on some of its projects and that it has adjusted it staffing requirements accordingly to accommodate the current easing market conditions," a Nakheel statement said.
Nakheel spokesperson described the decision as a responsible action in light of the current global market conditions.
“We have the responsibility to adjust our short term business plans to accommodate the current global environment. The redundancies are indeed regrettable, but a necessity dictated by operational requirements which are in turn dependent on demand,” added the spokesperson.
This is the second biggest confirmed job cut in the UAE so far, and comes after two developers, Damac and Omniyat confirmed a total of 269 - 200 by Damac and 69 by Omniyat.
All the affected employees were provided a redundancy package, which includes outplacement support services to assist in this time of transition.
All other major developers have earlier said they are revising headcount downwards, as business activities in Dubai's real estate has come close to a near halt.
Analysts say this is the beginning of a massive job cut across the real estate market.
"This is not the end, but the beginning and we do not know when it will end," said property analyst Sudhir Kumar, managing director of Realtors' International.
"In a situation like this, when lack of funds cut short economic activities, companies have to tighten their belts.
"We anticipate others will follow suit in announcing more job cuts."