Bank jobs go as HSBC and Emirates NBD reduce costs

The UAE is suffering slow economic growth, leading several banks to shed regional jobs. (Shutterstock)
Updated 15 November 2019

Bank jobs go as HSBC and Emirates NBD reduce costs

  • Others have also reduced headcount amid economic downturn and property market weakness

DUBAI: HSBC Holdings has laid off about 40 bankers in the UAE and Emirates NBD is cutting around 100 jobs, as banks in the Arab world’s second-biggest economy reduce costs.

The cuts come amid weak economic growth, especially in Dubai, which is suffering from a property downturn.

HSBC’s redundancies came after the London-based bank reported a sharp fall in earnings and warned of a costly restructuring, as interim CEO Noel Quinn seeks to tackle its problems head-on.

HSBC has about 3,000 staff in the UAE, part of a nearly 10,000-strong workforce in the Middle East, North Africa and Turkey.

The cuts at Dubai’s largest lender Emirates NBD came in consumer sales and liabilities, one source said, while a second played down the significance of the move.

HSBC and Emirates NBD declined to comment.

“The cuts are part of cost cutting and rationalizing to drive efficiencies in a challenging market,” the second source said.

Other banks have also reduced staff this year. UAE central bank data shows local banks laid off 446 people in the 12 months until the end of September. Foreign banks added staff in the same period.

Staff at local banks account for over 80 percent of the 35,518 banking employees in the country.

The merger between Abu Dhabi Commercial Bank, Union Commercial Bank and Al Hilal Bank saw hundreds of redundancies.

Commercial Bank International (CBI) said it would offer voluntary retirement to employees in September, which sources said saw over 100 departures. Standard Chartered, too, cut over 100 jobs in the UAE in September.

Rating agency Fitch warned in September a weakening property market would put more pressure on the UAE’s banking sector. 


Germany mulls how to attract skilled labor from outside EU

Updated 23 min 51 sec ago

Germany mulls how to attract skilled labor from outside EU

  • The new legislation will take effect March 1
  • German official said shortage of skilled workers is currently biggest risk to business

BERLIN: Chancellor Angela Merkel is meeting top German business and union officials on Monday to discuss how to attract skilled workers from outside the European Union as the country tries to tackle a shortfall of qualified labor.
Legislation is due to take effect March 1 making it easier for non-EU nationals to get visas to work and seek jobs in Germany. Arrangements currently applied to university graduates are being expanded to immigrants with professional qualifications and German language knowledge.
“Many companies in Germany are urgently seeking skilled workers, even in times of a weaker economy,” Eric Schweitzer, the head of the Association of German Chambers of Commerce and Industry, told the Funke newspaper group. “For more than half of companies, the shortage of skilled workers is currently the biggest risk to business.”
He called for “unbureaucratic and effective implementation” of the new legislation.
Sectors including information technology and nursing have complained of a shortage of workers.
Monday’s meeting will discuss which countries German business wants to focus on “and we will cut out the bureaucratic hurdles,” Labor Minister Hubertus Heil told RBB Inforadio. He named as examples the process of recognizing professional qualifications, language ability and visa procedures.
Like many other European countries, Germany is trying to strike a balance between the needs of its labor market, an aging native population and concern about immigration.
Heil said that the aim isn’t to undercut German wages and “our problem at the moment is rather that we are not being overrun, that we are not getting qualified workers.”