Barclays to Cut 150 Jobs in Dubai

Dubai Marina. Photo by David Pin
Dubai Marina. Photo by David Pin

The downtown Dubai offices of Barclays Plc in Emaar square are closing due to worldwide overhaul in structuring of the giant lending institution headquartered in the U.K. Approximately 150 people will be fired, while others, such as bankers and support staff, will be move to Barclays’ office at the Dubai International Financial Center. The corporate office in Abu Dhabi will remain open and Barclays will retin its wholesale banking license with the U.A.E. Central Bank.

CEO Jes Staley is embarking on a plan which will eventually see the slashing of 1,200 jobs around the world. The facelift will see the closing of securities operations in Asia and a hiring freeze. There will also be a restructuring of the wealth-management business to improve earnings growth.

Analysts estimate that as many as 1,500 jobs have been cut in the past six months in the UAE. Those jobs are not just from the international companies with businesses in the Middle East, but also local lenders are cutting back.

Investments banks are suffering from lowered revenue, stricter financial regulations, and increased costs due to the requirements of those regulations. These challenges have forced companies to focus more on the most profitable units. Local banks need to cut due to lowered oil prices which freezes liquidity and increases defaults on loans.