ABC lays off some Bahrain staff

09 January 1998
FINANCE

Arab Banking Corporation (ABC) has laid off 25 employees at its head office in Bahrain, all of them expatriates. Bankers in Bahrain say that the 350 staff at ABC's head office have been expecting a wave of redundancies for several months. ABC officials say the layoffs are due to cost-cutting and new labour-saving technology, with many in support departments of the bank.

ABC International Bank, ABC's London subsidiary, is also reported to have made some staff redundant during 1997, but bank officials were not available for comment when MEED went to press. ABC's chief executive, Ghazi Abdul-Jawad, told a banking conference in Bahrain at the start of December that Arab banks would have to be prepared to cut staff to make themselves more efficient in the face of foreign competition. 'This is, I'm afraid, a nettle which must be grasped,' he said. 'Inevitably, a bank will retain those members of staff who have proven able to adapt quickly and are trainable. Others may have to be laid off.'

ABC is assessing a comprehensive strategy review carried out during 1997 by consultants Arthur Andersen (MEED 28:11:97).

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