Dubai developer Nakheel is cutting salaries by up to 50 per cent due to the impact of the Covid-19 pandemic on operations, it has confirmed.
The cuts are being implemented starting April 1 and will continue until further notice.
“Nakheel, like all businesses across the globe, continues to be impacted by this unprecedented situation, and must put measures in place to allow us to continue to operate in the best interests of our stakeholders,” a statement said.
“The revised salary structure – which took effect on April 1 and varies depending on grade – has been implemented to help us weather this storm, safeguard our staff and secure the continuity of our business,” it added.
While top management will face pay cuts of 50 per cent, mid-level staff will see cuts ranging from 30 to 40 per cent. Those earning Dhs4,000 or less will be exempt from the move.
The developer also confirmed that CEO Sanjay Manchanda stepped down from his position March 1, 2020 to “pursue new opportunities”.
“His replacement will be announced in due course”, a statement said.
In January, the Nakheel announced that it had appointed Mohammed Ibrahim Al-Shaibani as its new chairman to replace Ali Rashid Lootah.
Lootah, who took on the position in 2010, resigned to assume a new position with the Dubai World board.
The developer was hit hard by the 2009 property market crash and was forced to undertake a $16bn debt restructuring in 2011.
In August 2016, the company said it had repaid all its debts.
Nakheel, whose projects include the Palm Jumeirah and Deira Islands, has focussed in recent years on increasing annual recurring revenues from retail, leasing and hospitality, in addition to its core residential portfolio.