Dubai’s third-biggest private sector lender Mashreqbank is reportedly planning to move half of its employees to cheaper hubs in a bid to slash operational costs.

Mashreqbank will also allow some of its staff to work from home as part of the dramatic shakeup, Bloomberg reported citing people familiar with the matter.

The oldest Emirati private bank has already notified its employees regarding its plan this week.

Mashreqbank may shift jobs to India, Egypt, or Pakistan, the report added.

The lender, including its subsidiaries, employed nearly 5,000 people as of September 2019.

As part of its latest overhaul, Mashreq will axe several existing roles and replace them with new positions for staffs moving to its “centres of excellence”.

The salaries offered in the cheaper hubs are said to be a fraction of what employees earn in the UAE.

However, the scale of the planned shift of back-office operations by Mashreq is sizeable, according to Bloomberg.

Additionally, in offshore centres, few employees can work from home permanently.

Mashreq is also planning to turn more jobs into remote working positions and lowering salaries for an additional 7% of its employees in the Kingdom.

The relocation of its staff will take place in three phases, and it is expected to be completed by October 2021.

The latest plan excludes Mashreq’s Emirati employees, the Bloomberg report added.