With economic growth being extremely slow in the United Arab Emirates (UAE), particularly in Dubai, the Dubai Islamic Bank (DIB) is expected to let go more than 500 employees at Noor Bank, which it had acquired in January. The move is part of the Bank’s cost-cutting measures.
While it has not been decided how many will finally be asked to leave, presently, DIB has over 9000 employees, while Noor Bank has 1200 to 1400 people in its workforce, and the downsizing will shrink the workforce of both the banks.
There have been a series of mergers in UAE, and as a result, there has been a slump in terms of financial-sector jobs.
The acquisition of Noor Bank by DIB has made the latter one of the biggest Islamic banks in the world, with assets worth 275 billion dirhams ($75 billion).
Leaders in the organisation have been discussing the move in the last couple of weeks, and it is reported that jobs will be cut at Noor Bank as well as DIB, but the impact will be more at the former, with over 500 staff members expected to be rendered jobless.
This is not the first time employees are being asked to leave at Noor Bank. In 2017 too the Bank had undergone a cost-reduction exercise wherein dozens of people were laid off.
John Iossifidis, the CEO of Noor Bank had already decided to put in his papers last month, as was learnt via an internal communique.