More jobs at risk as Emirates Group restructures

25 January 2017

About 40 employees made redundant in 2016

Staff restructuring at Dubai-based Emirates has directly affected only about 40 employees last year although more jobs could be at stake in 2017, according to sources familiar with the company’s operations.

As of January, a limited number of staff have been required to re-apply for their jobs. This process could result in staff losing their job or being downgraded to a more junior role if they don’t have the required skills anymore, MEED has been told.

Many other Emirates’ employees are concerned about potential cost-cutting measures, including non-payment of performance bonuses comes March or April, when the company completes its fiscal year, rather than job losses.

Other cost-cutting measures include a freeze on acquiring new office equipment or devices such as laptops and other expenses that are deemed not necessary.

A combination of weaker demand as oil prices remain low, a strong dollar, fierce competition and increased capacity triggered a 64 per cent decline the group’s net profit in the first half of the current fiscal year.

In one of its best operating years in 2014-15, Emirates paid $286m in staff bonuses on the back of a AED4.5bn ($1.2bn) net profit. At the time this translated to roughly nine weeks’ employee salary.

The airline has recently confirmed a restructuring process impacting “a very small number of staff”.

Employee headcount within Emirates Group, including travel and logistics arm Dnata, stood at 95,322 as of end March 2016, according to the company’s 2015-16 annual report.

Recent reports have indicated that the total employee number stands at 103,000, which appears to validate the company’s statement that it continued to hire new employees despite the ongoing staff review.

When contacted by MEED, Emirates said it is not commenting on the issue beyond what has been published.

UAE national carrier Etihad Airways confirmed in December a restructuring process, which sources say could result in the loss of between 1,000 and 3,000 jobs.

James Hogan, Etihad Airways president and CEO since 2006, will be stepping down along with the company’s chief financial officer James Rigney later this year.

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