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Emaar U.S. Unit to Cut Jobs Due to Slowdown -Paper - ASHARQ AL-AWSAT English Archive
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DUBAI, (Reuters) – The U.S. unit of Emaar Properties, John Laing Homes, will cut jobs and review operations due to the credit crisis and global economic downturn, a company official said in remarks published on Saturday.

The layoffs will run across John Laing Homes’ operations, focused mainly in Southern California and Colorado, which have been hit hard by the financial meltdown, Abu Dhabi-based daily newspaper The National reported.

“John Laing is reviewing its operations due to market conditions,” Linda Mamet, a company spokeswoman told the paper, declining to say how many jobs would be cut.

“We have made a reduction in force this week and we’ll have more information shortly about the review of the operations,” she said.

In the remarks published by the newspaper Mamet did not give a figure for the number of employees at the U.S. unit.

Dubai-based Emaar missed analysts’ forecasts with a 3.3 percent fall in profit in the third-quarter ended Sept. 30, as it took a 750 million dirham ($204.2 million) writedown on its U.S. unit.

John Laing is suffering from the pains of a U.S. mortgage crisis triggered last year by defaults on subprime mortgages. Emaar bought John Laing for $1.05 billion in June 2006 as the U.S. housing market was peaking after five years of expansion.

A spokeswoman for Emaar could not immediately comment on the report.

Laing’s Mamet said the firm was also deciding whether to halt sales on projects and shut down some of its U.S. offices.

Work has already stopped on a 180-unit condominium building in Hollywood called the Madrone, media reports in California said.

Emaar Chairman Mohamed Ali Alabbar said in November the developer could make job cuts as it looks to weather the impact of the global financial crisis that has hit the once-booming real estate sector of the Gulf emirate.

Asharq Al-Awsat

Asharq Al-Awsat

Asharq Al-Awsat is the world’s premier pan-Arab daily newspaper, printed simultaneously each day on four continents in 14 cities. Launched in London in 1978, Asharq Al-Awsat has established itself as the decisive publication on pan-Arab and international affairs, offering its readers in-depth analysis and exclusive editorials, as well as the most comprehensive coverage of the entire Arab world.

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