Dubai’s largest bank Emirates NBD Tuesday laid off 800 employees as the institution launches adjustment plan to navigate impacts of the covid-19 pandemic.
A spokesperson for the bank told The Khaleej Times the decision comes as result of the impacts of the pandemic on the economy, financial services sector and the lender itself.
“Unfortunately, this has meant letting go of some of our colleagues as we right size to meet our anticipated future business needs, especially in the light of the economic forecasts that point towards challenging times ahead,” the spokesman said.
Gulf News indicated that the Emirates NBD has planned the layoffs especially with the digitalization of the bank, but the impact of coronavirus accelerated it.
The cuts only concern 10 per cent of staff and across various sections.
The move comes after credit ratings agency Moody’s changed the bank’s outlook to negative over “a challenging operating environment in the UAE due to the coronavirus outbreak, low oil prices and pre-existing economic challenges.”
The bank has reported a decline in its Q1 profit. It also announced that impairment allowances rose in anticipation of a deterioration in credit quality, Gulf News reports.