Emirates embarks on ‘modest restructuring’ as growth slows

The restructuring involves moving employees into new position that result in both promotions and demotions.

Emirates reported a 75 per cent decline in half-year profit two months ago because of slower growth and increased competition.   Randi Sokoloff / The National
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Emirates, the world's biggest long-haul airline, said on Monday that it was in the process of only a "modest restructuring," two months after it reported a 75 per cent decline in half-year profit because of slower growth and increased competition.

Arabian Gulf carriers who spent years rapidly expanding into markets from South America to Africa are under pressure to adapt to weaker markets, overcapacity and a stronger US dollar.

The restructuring at the Dubai carrier involves moving employees into new positions in which staff have been both promoted and demoted, a spokeswoman said, adding that a “very small number” of staff had been affected.

“Where roles were impacted, full support has been given to explore redeployment opportunities within the organisation,” the spokeswoman said.

Sources told Reuters in December that Emirates had offered redundancies to staff working in its head office in Dubai as part of a review of its workforce.

About 1,000 employees have left Emirates in the past three months “for various reasons and largely through natural attrition,” the spokeswoman said.

“This is no different from previous years. Role and structure reviews in some areas impacted less than 40 staff during this same period, and a number of these were on a voluntary basis,” the spokeswoman said, adding the company continues to hire new staff.

Emirates, including associated companies under the Emirates Group, employs 103,000 staff, which means the 1,000 jobs gone represent about 1 per cent of its workforce.

While Emirates has also said that it could cut routes, it has recently announced that it was expanding its network, with flights to Zagreb and Newark due to start this year.

* Reuters


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