Dubai World slashes global workforce

Dubai World Global Workforce

Dubai World, the state-owned investment group, has announced it will cut its global workforce by 15 percent, taking it below 70,000, as a result of the global financial crisis.

The majority of cuts were made in the UAE itself - 25 percent - after the real estate market was hit particularly hard by the crash. The restructuring operation will result in a saving of more than 800 million dollars over the next three years, the company said in a statement.

Dubai World operate a number of major ports across the globe, and its subsidiaries include property division Nakheel, investment business Istithmar World and newly-created retail management arm Retailcorp World.

The company had this to say in their statement: "Each Dubai World division is now more appropriately sized for the current market while at the same time well placed to take advantage of the eventual economic recovery."

Despite falling business after the crisis hit, DP World managed a 48 percent growth in profits through 2008, the company announced in March. It also announced in January this year that it would be reviewing expansion plans and putting a freeze on recruitment after a drastic downturn in the container terminal industry. BM reported yesterday that state-related companies in Dubai are due to repay US$50 billion in debt - 70 percent of the Gulf emirate's estimated GDP - within the next three years.

DP World are now facing the realisation that it will struggle with repayments without direct support from the government, they said in its statement, adding that at least three other Dubai state-linked businesses also have a "very high" or "almost certain" prospect of needing state help.

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