Abu Dhabi Commercial Bank (ADCB) is reportedly planning to axe up to 2,000 jobs as a part of a previously completed merger process.
In May this year, the UAE-based lender completed its merger with domestic peers Union National Bank and Al Hilal Bank.
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ADCB lay-offs: Details
According to a Bloomberg report, the redundancies started after the bank commenced integrating its operations will the two other lenders.
Sources familiar with development told the publication that the bank aims to complete the lay-offs in the next few months.
However, the ADCB spokesperson declined to comment on the issue.
Before the merger, the three lenders had a combined workforce of around 8,500. The latest figure is almost double from the 1,000 cuts earlier estimated as an effect of the combination.
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By GlobalDataThe merger, one of the many bank consolidations in the Middle-East recently, created fifth-biggest lender in the Gulf region. With around $115bn in assets, the combined bank is also the third-largest bank in the UAE.
The combination plan involved Union National Bank’s merger into ADCB. Subsequently, the combined entity acquired Al Hilal Bank.
In January this year, ADCB announced that the merger will result in cost savings of about $167m per year.
Bloomberg said that the latest job-cuts may affect the national economy, which is already struggling with falling growth and decelerating real-estate sector.
