The UAE’s United Arab Bank cut 150 jobs last week as part of its cost-saving measures, Reuters reports. The bank said in a statement that it found an ‘excess capacity’ in its human resources after conducting a thorough assessment.
“Letting go of talent is never an easy decision,” it said. The United Arab Bank job cuts decision affected mainly, junior and middle-level staff and select senior positions.
Last month, the bank appointed Ahmad Mohammad Abu Eideh as its new chief executive officer. The new CEO’s appointment was in efforts to reinforce the services, provide more benefits to the customers, and generate significant revenue for the shareholders.
In recent times, banks in the UAE have reduced job positions under various circumstances such as economic slowdown and consolidation in the banking sector.
Last September, the government of Sharjah was considering a merger between Invest Bank, Bank of Sharjah, and the United Arab Bank. The initiative came as part of an effort to help Invest Bank with its high bad debt ratios, partly owing to the underperforming real estate and construction sectors.
However, the bank’s shareholder Commercial Bank did not appear very keen on the merger. Commercial Bank chief executive Joseph Abraham said in a statement “Our focus remains on executing the agreed strategy of UAB, and merger discussions are not a priority as we believe there is significant potential in UAB.”