Middle East News: Saudi Binladin Construction Cuts Jobs and Pay - Bloomberg:
Saudi Binladin Group cut jobs and reduced staff salaries as Saudi Arabia’s biggest construction firm navigates the fallout of the coronavirus pandemic.
The Jeddah-based conglomerate put thousands of employees on indefinite, unpaid leave as it weighs options to lower costs by as much as 50%, according to people with knowledge of the matter. The group reduced pay by about a third during the holy month of Ramadan to reflect shorter working hours, which impacted about half of its 100,000 employees, according to an internal announcement seen by Bloomberg.
The company, which is restructuring an estimated $15 billion of debt, has already started laying off staff, including senior managers, and more jobs will be cut, the people said, asking not to be identified due to the sensitivity of the matter. A Binladin representative didn’t respond to requests for comment.
Saudi Arabia’s economy is being battered by a 50% slump in crude prices this year and from lockdown measures to prevent the spread of Covid-19. Faced with the prospect of ballooning deficits, the government has tripled valued-added tax, cut allowances for state employees and tapped its foreign reserves.
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