Dubai Palm-Island Developer Cuts Pay as Pandemic Hurts Revenue
Dubai Palm-Island Developer Cuts Pay as Pandemic Hurts Revenue
(Bloomberg) -- Nakheel PJSC, the developer of the palm-shaped island in Dubai, joined companies in the Middle East business hub that cut pay after the coronavirus pandemic slashed demand at its malls and hotels.
The company reduced salaries by as much as 50% starting April 1 and the cuts will continue until further notice, according to a letter sent by Nakheel’s steering committee to employees and confirmed by the developer.
The measures have “been implemented to help us weather this storm, safeguard our staff and secure the continuity of our business,” a Nakheel spokesperson said in an emailed statement.
Dubai loosened its virus restrictions at the end of April after three weeks of strict lockdown that required people to apply for permits before visiting pharmacies or grocery stores.
Emaar Properties PJSC, Dubai’s largest publicly-traded developer, also introduced pay cuts as has Emirates, the world’s largest long-haul airline, after it grounded passenger flights.
The pay cuts at Nakheel include:
- 50% for top management
- 40% for middle management
- 30% for support staff
- No cuts for employees earning 4,000 dirhams ($1,089) or less
©2020 Bloomberg L.P.