This large real estate developer cuts salaries of staff by half
New Delhi: The corona virus outbreak is taking a heavy toll on all the economic activities and many real estate developers are feeling the pinch. Now one of the largest real estate company in Dubai Nakheel has cut the salaries of its staff by as much 50 percent, according to a news report by news wire Reuters.
The top management of the company including the senior officials have been told that their salaries would be cut to half from 1 April. The middle level staff will have to settle with a salary cut of 30-40 percent. However, those earning up to 4,000 dirhams (or about USD 1,089) per month will not have to face any salary cut.
Interestingly, Nakheel is a government owned company.
"Due to the ongoing circumstances, we have reached the stage where it is time to implement some necessary measures to help us weather this storm, safeguard our staff and security continuing of our business," state-owned Nakheel said in the email.
Dubai has been reeling under a real estate slowdown for the past 5-6 years. Ten prices of residential property has come down as much as 25 percent in the last 5 years alone.
Now the other real estate developers in Dubai may also be encouraged to cut salaries of their staff.