Slowdown Causes Job Cuts of Emaar

The United States unit of the company Emaar Properties (EMAR.DU) announced through John Lain Homes that they will begin the first round of job cuts and extensive review of operations because of the ongoing credit crisis and the economic downturn affecting all parts of the world. This was released by a company official in a statement that was published last Saturday. Such layoffs would be running across the operations of John Lain Homes and mainly focuses on the parts of Southern California and also in Colorado – two areas that had been badly hit by this ongoing financial meltdown. This was according to the Abu Dhabi news paper entitled The National.

Market Conditions Cause of Job Cuts and Operations Review

John Laing went further to announce its intention to review their main operations because of the worsening market conditions, according to Linda Mamet who is the company spokeswoman. When the paper asked her about how many jobs would be cut from their operations, she declined to answer the question that was raised by most and by far had the most number of concerned individuals. Instead, the replied that they will begin their reduction measures in full force starting this week and that further information regarding the matter will be released after they finish reviewing their operations. The remarks that were published in the newspaper clearly did not give even an inkling as to how many jobs will be cut from their United States rank.

More Dubai-Based Forecasts

Emaar, a Dubai-based company, also notes that it had sorely missed the forecasts of analysts which came with a three point three percent fall in terms of profits right after the third quarter ended last September 30, 2008. Along with it, around seven hundred and fifty million dirhams (which is the equivalent of two hundred four and point two million United States dollars) had been written off its United States unit. More news reports show that John Laing is currently suffering from the blows brought about by the mortgage crisis that began in the United States and was triggered last year because of subprime mortgages. As a result, Emaar ended up buying John Laing for a total of one point zero five billion United States dollars even after the five year peak expansion that occurred beforehand. One spokesperson from the company Emaar had been invited to comment on this news bit but had declined to do so. Mamet had instead intervened to say that their firm was still in the middle of deciding if they should simply halt the sales on their projects or totally shut down selected bases in their United States offices. More statements are expected to be released in the coming weeks ahead.