MNC banks layoff thousands of employees globally: Will we see job cuts in Dubai?

• Banks reflect the economy’s health and in 2024 major banks worldwide are laying off! 
• Asad Jamil, a Senior Consultant at Robert Walters, discussed with Richard Dean of Dubai Eye 103.8 how global layoffs could impact Middle East counterparts.
• Good news – Middle East banking sector promises a positive hiring outlook in 2024.
• Here is the summary of the conversation.

Big banks making cuts

Citigroup recently announced a massive 20,000 job cuts by the end of 2026 following a significant loss in the last quarter. This would impact 8% of its global workforce.

The move occurs as Citi pushes forward with a comprehensive restructuring effort.

Following suit, in early February 2024 Deutsche Bank declared job cuts of around 3,500 as it ramps up automation.

Some 5,000 roles were axed from Barclay’s global workforce of 84,000!

The financial services industry is undergoing a significant transformation with cost reduction and greater efficiency becoming a top priority.

Presence of Citi, Barclays, and Deutsche in the Middle East

Citi Bank is a major player in the region, boasting almost 2000 employees.

Deutsche Bank and Barclays have a smaller presence in the region compared to Citi.

Deutsche Bank has branch offices and representative offices in various Middle Eastern countries, such as Dubai, Abu Dhabi, Saudi Arabia, Egypt, and Qatar.

Barclays has offices in the UAE, specifically at the Dubai International Financial Centre and Dubai World Trade Centre, as well as in Abu Dhabi.

Impact of global layoffs on subsidiaries operating in the UAE

Globally, there is a trend towards leaner organizations.

Recently Jane Fraser, CEO of Citi Group emphasized the importance of becoming a leaner organization and predicts that 2024 will mark a turning point for her and the financial services industry.

According to Asad, this might not necessarily happen in the Middle East for banking and financial services.

Why? The setups of MNC banks in the UAE & and the Middle East in general have always been lean.

However that being said even if the UAE is doing great, it still has to cut jobs to meet the rules set by big banks globally. This can be tough but rules are rules.

Also read Layoff frenzy at Citigroup: CFO Mark Mason announced 20,000 job cuts globally. Here’s what you need to know

Where cost cuts can happen?

They don’t want to necessarily let go of people when it comes to revenue generation.

Non-revenue generating roles such as client servicing or operations might take a bigger hit.

They might consider transferring someone to an offshore location or employing them on a contract basis if the situation calls for it.

Good news for Private Bankers

Even with all the changes, there are still some good places for jobs.

Private banking, especially in the UAE, is growing.

Most of the banking activities happen in Dubai, but Abu Dhabi is also getting busier, especially with its financial district ADGM growing.

Ras Al Khaimah (RAK) indeed shows promise. The Emirate’s focus on diversifying its economy beyond traditional sectors like oil and gas, along with its pro-business policies, makes it an attractive destination for investment and expansion.

Oman: Several funds are getting established in Oman, infusing additional capital into the market. More employment opportunities in the investment sector are rising.

Saudi Arabia as well is growing and we see great potential.

Lateral hiring has become extremely difficult as banks go to great lengths to retain their best private banking talent. But variable models still stay a big talking point; better bonuses and commissions for private bankers.

Wrapping Up…

The Middle East is one of those shining beacons of hope in a pretty challenging global market. Even in the ups and downs of the banking world, the UAE shows resilience and adaptability.

Even with global layoffs, the UAE’s commitment to growth means there are still plenty of job opportunities. Middle East banking sector promises a positive hiring outlook in 2024, said Asad.

As we keep moving forward, it’s about staying positive and ready for whatever comes next in the world of banking jobs.

Here is the link to Robert Walters’ Salary Survey Guide Middle East 2024. You can check out Asad’s interview by clicking here.