The profits of Abu Dhabi Commercial Bank in the first quarter of this year decreased by 84% due to several factors, including the provision of nearly one billion dollars in loans to the NMC Healthcare Group, which was described as bad.
Sources told Reuters that Abu Dhabi Commercial Bank, the third largest bank in the United Arab Emirates, plans to lay off hundreds of its employees in order to reduce costs.
The sources indicated that the bank would fire 400 employees and close 20 of its branches, although the bank had pledged in March not to cut employment due to the Corona crisis.
One of the sources told Reuters that the layoff will affect employees in senior management, and that the bank is considering closing 20 branches.
It is noteworthy that the abandonment will go to hundreds of newer employees, and the layoffs are carried out by regional banks in order to reduce costs amid mounting pressures due to lower oil prices and the Corona crisis.
A spokesman for Abu Dhabi Commercial Bank said that the bank has sought over the past decade to achieve efficiency through managing the development of digital banking services and supporting banking efficiencies.
Abu Dhabi Commercial Bank announced last March that no new employee would be appointed during 2020 as a result of the Corona pandemic, due to which UAE banks were affected by government measures to curb the spread of the virus, forcing many companies to temporarily close.
The National Bank of Dubai - the largest bank in Dubai and the UAE - announced last week that its profits decreased by 58%, after - according to what sources told Reuters in June - began a new round of layoffs of hundreds of employees.