In an effort to decrease costs in the face of tougher domestic competition Etisalat is cutting back 3 percent of staff, according to recently published remarks.
Etisalat is the leading telecom in the UAE and surrounding area. The National cited company officials who noted that out of 10,460 employees, around 300 jobs will be trimmed.
The VP of human resources at Etisalat, Faiez Awadh, reported to the media that the cut backs at the firm were to improve productivity and performance and would be focusing on those aspects along with redundancies and age factors within the company.
The top position that Etisalat holds is being threatened by du, the UAE’s second biggest telecom provider. Du currently holds a 37 percent market share (close of August 2010 figures) and recorded profits for the third quarter that had grown 100 percent over the former month based on strengthening revenues.
Etisalat has been trying to get into areas of high potential growth in the Middle East region and Africa, specifically the Sudan and Iraq.
The firm is also attempting to purchase a stake in Zain, a telecom in Kuwait. Etisalat decreased their bid from 46 percent down to 40 percent – a $12 billion bid by a consortium headed by Kharafi Group, an investment and construction firm from Kuwait.
Shareholders not included in the consortium have put forth opposition to the bid, along with a board member of Zain. They objected to the premium the deal would deliver to the Kharafi Group and have blocked it, which has the potential to delay the acquisition.
The original offer from Etisalat involved treasury shares under the ownership of Zain and would have resulted in the UAE firm obtaining a 51 percent controlling stake in the Kuwaiti firm.Andrew Reid, Staff Writer, Gulf Jobs Market News