HSBC, Emirates NBD cut jobs in UAE to cut costs

HSBC Bank
HSBC Bank

HSBC Holdings haslaid off about 40 bankers in the United Arab Emirates (UAE) and Emirates NBDis cutting around 100 jobs, as banks in the Arab world's second-biggest economyreduce costs, sources familiar with the move told Reuters.

The job cuts comeat a time of weak economic growth, especially in the region's business hub –Dubai – which is suffering from a property downturn.

HSBC's redundanciescame after the London-based bank reported a sharp fall in earnings and warnedof a costly restructuring, as interim Chief Executive Noel Quinn seeks totackle its problems head-on in his bid for the full-time role.

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

The cuts at Dubai'slargest lender Emirates NBD came in areas such as consumer sales andliabilities, one of the sources said, while a second source played down thesignificance, citing the bank's 12,000 workforce.

HSBC and EmiratesNBD declined to comment.

"The cuts arepart of cost cutting and rationalising to drive efficiencies in a challengingmarket," the second source familiar with the matter said about EmiratesNBD.

Other banks havebeen reducing staff this year.

UAE central bankdata shows local banks have laid off 446 people at the end of September fromthe same period a year ago, while foreign banks have added staff in the sameperiod.

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