Why Is Saudi Binladin Group Laying-off 15,000 workers?

The Saudi Binladin Group is one of the biggest construction companies in the Middle East. After the tragic accident in Makkah last September 11 the King of Saudi Arabia gave sanction in which  the company can no longer receive projects.

The company right now is planning to cut 15,000 staff.  But based on the Linkedin information of the company, the lay-off number is nothing but a small percentage of Saudi Binladin's total workforce of 200,000.

The cut-back however is not solely a result of the sanction but also a result of pressure in many industries in the Middle East due to the low oil price.

A source, which ArabianBusiness.com chose not to be named due to sensitivity of the matter also said, that these 15,000 employees will be laid-off immediately while others will be transferred to work on a project in Jeddah Airport.

The biggest challenge Saudi Binladin Group as well as other construction companies are facing would be the spending curb of the Saudi government due to low oil price. Many government projects will be delayed and some projects will be cancelled. Government bodies are also demanding to cut cost from some of its contractors.

Information Source: Arabianbusiness.com

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