Before the merger, the three banks employed about 8,500 people. ADCB started laying off employees once it began the merger with the two other banks.
The restructuring procedure will be complete in the next few months, reports Bloomberg, citing people with knowledge of the plans.
ADCB has declined to comment on the layoffs post-merger, Bloomberg reported.
While the new entity retained the name ADCB, UNB was delisted and dissolved as a legal entity.
Meanwhile, Al Hilal Bank retains its existing identity and continues to operate as a separate Islamic bank within the ADCB Group, focusing on Sharia-compliant retail banking services.
"This merger creates a resilient banking group with the capacity to invest in our mission to provide excellent service for our customers in our core market, the UAE,” Alaa Eraiqat, chief executive officer of ADCB Group had said at the time of the merger in May, 2019.
Abu Dhabi has been focusing on creating more competitive financial institutions. The job cuts are likely to weigh on the UAE economy that’s already being impacted by falling home prices and slow growth, the report said.
(Writing by Seban Scaria; editing by Mily Chakrabarty)
Our Standards: The Thomson Reuters Trust Principles
Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.
© ZAWYA 2019