Abu Dhabi TNI plans big job cuts
Abu Dhabi, February 7, 2012
Abu Dhabi-based investment firm, The National Investor (TNI), has shed more than half of its workforce and is planning more job cuts in a bid to reduce costs in response to tough financial markets, said sources.
Like a number of rival Middle Eastern investment firms, TNI is struggling to boost revenue and remain profitable in depressed capital markets following the global financial crisis, sources said yesterday.
TNI, which operates in private equity, investment advisory and asset management businesses, had the first round of layoffs last year reducing its workforce to the current level of around 55 people the sources told Reuters.
"The latest round of redundancies began last week with more expected. Most lay-offs are in investment banking and equities," one source familiar with the matter said.
The company blamed "restructuring efforts" for headcount reductions, the sources said.
TNI officials declined to comment when contacted by Reuters.
TNI's board wants the firm to break even and is cutting jobs to offset the lack of revenue growth, the source said speaking on condition of anonymity.
Privately owned TNI's revenues declined 13 per cent to Dh161.9 million ($44.1 million) in fiscal year ending 2010-11. Net profit plummeted to Dh2.2 million versus Dh30.8 million the previous year.
The firm had advised on initial public offerings of companies such as Aldar Properties amd Abu Dhabi Islamic Bank.
TNI's investment banking business has been sluggish as mergers and acquisitions and initial public offerings (IPOs) show no signs of recovery in the short term, the firm said in its latest annual report.
The firm has advised on IPOs of companies such as Aldar Properties and Abu Dhabi Islamic Bank.-Reuters