Abu Dhabi-based investment firm, The National Investor (TNI), has shed more than half of its workforce and is planning more job cuts in a bid to reduce costs in response to tough financial markets, several sources told Reuters on Monday.
Like a number of rival Middle Eastern investment firms, TNI is struggling to boost revenue and remain profitable in depressed capital markets post the global financial crisis.
TNI, which operates in private equity, investment advisory and asset management businesses, had the first round of layoffs last year reducing its workforce to the current level of around 55 people the sources told Reuters.
“The latest round of redundancies began last week with more expected. Most lay-offs are in investment banking and equities,” one source familiar with the matter said.
The company blamed “restructuring efforts” for headcount reductions, the sources said.
TNI officials declined to comment when contacted by Reuters.
TNI’s board wants the firm to break even and is cutting jobs to offset the lack of revenue growth, the source said speaking on condition of anonymity.
Privately owned TNI’s revenues declined 13 per cent to Dhs161.9 million ($44.1 million) in fiscal year ending 2010-11. Net profit plummeted to Dhs2.2 million versus Dhs30.8 million the previous year.
The firm had advised on initial public offerings of companies such as Aldar Properties amd Abu Dhabi Islamic Bank.