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Aldar Properties cuts 105 jobs

Abu Dhabi-based Aldar Properties has announced that it is cutting 105 jobs, which account for 24% of its workforce, following a strategic review of its operations. The company said its new corporate strategy, which takes into account the existing market environment, is aimed at reorganising and refocusing its business development efforts.

The company’s new focus “will ensure efficient and targeted use of financial resources, improve the risk/reward profile of the development portfolio, increase fee based development and operating income streams and position the company to capitalise on future real estate market opportunities,” the statement said.

Following the review a number of new functions were created, some functions were expanded while other functions have been scaled back, the company said.

“We need to ensure that we have the appropriate size, structure and skills for the current and future environment and that this new structure creates more accountability and greater efficiency built around lean core teams, as well as an additional focus on key functions,” said the company’s chairman, Ali Eid AlMheiri. He added that the maing goal of the new strategy is to ‘return Aldar to long term growth and ensure ongoing value creation for all our stakeholders’.

Earlier this year Aldar was bailed out by a $5.2bn rescue package by Abu Dhabi, and Moody’s later downgraded the developer’s credit ratings to B2 from Ba3 with outlook changed to negative, citing uncertainty over future government support for the company.