Dubai’s Majid Al Futtaim (MAF) has cut 105 jobs out of its total staff of 46,000, the Middle Eastern shopping mall developer and the operator told Reuters, as its new CEO seeks to boost returns.
The company, whose roughly $16 billion in assets include an indoor ski resort and the Mall of the Emirates, said in an emailed response to questions that the cuts were made this week as part of an “ongoing review”.
Three sources familiar with the move said it was part of a restructuring following the abrupt removal of former chief executive Alain Bejjani in January.
“We continually assess our operations and adapt to accommodate evolving market conditions, streamline our activities and drive efficiencies,” said MAF, which also holds the Middle East franchise rights of French retailer Carrefour.
“These measured actions and continuous business-as-usual reviews enable Majid Al Futtaim to deliver competitive returns to our shareholders while maximising opportunities for value accretive, profitable and sustainable growth,” it added.
MAF appointed long-time insider Ahmed Galal Ismail as chief executive in January, replacing Bejjani after eight years in the role, in a shake-up more than a year after the company’s founder died. MAF gave no reason for the leadership change at the time.
The cuts were made at the holding level of the company, in addition to divisions such as its leisure and entertainment operations, the sources said, speaking on condition of anonymity.
MAF was founded by Emirati businessman Majid Al Futtaim, whose death at the end of 2021 was announced by Dubai’s ruler Sheikh Mohammed bin Rashid al-Maktoum, who paid tribute to him as one of the emirate’s pioneers.
The privately held company on March 6 reported a 12% increase in 2022 revenue to 36.3 billion dirhams ($9.89 billion), and a 2% decline in net profit to 2.4 billion dirhams.