Dubai World has laid off 10,500 employees worldwide as the company restructures to save $800m over the next three years.
In Dubai, the government-controlled holding company reduced it’s workforce by 25 per cent. The company says this was a result of the downturn in the real estate market in the region.
The operating companies affected by the restructuring include port operator DP World, real estate developer Nakheel, investment company Istithmar World, and Retailcorp World, a new retail management company that will supervise Nakheel’s shopping malls. Dubai World says that each division is now more appropriately sized for the current market.
In June, Dubai World merged the real estate operations of Nakheel, Jumeirah Golf Estates, Jumeirah Lakes Towers and Dubai Maritime City (MEED 25:6:09).