According to the World trade organization the trade in 2020 is reduced up to 15% due to COVID-19. This means that almost every country is in loss. The estimated lose due to the outbreak of coronavirus is about $80 Billion. As a precaution social distancing is required so many companies are forced to reduce their working staff.
Bin Ladin’s Big decision
Saudi Bin Ladin Group cut jobs and reduced staff salaries as Saudi Arabia’s biggest construction firm navigates the fallout of the Coronavirus pandemic. Bin Ladin Group is the biggest construction firm in Saudi Arabia right now and have thousands of employees (including Saudi expats) which mean a thousand families are taken care by Bin Ladin. But the shocking step taken by Bin Ladin’s owners has also put thousands of employees (Saudi expats) on indefinite, unpaid leave.
Pays are also reduced?
The Jeddah-based conglomerate put thousands of employees specially Saudi expats on indefinite, unpaid leave as it weighs options to lower costs by as much as 50%, according to people with knowledge of the matter. The group reduced pay by about a (1/3) during the holy month of Ramadan to reflect shorter working hours, which impacted about half of its 100,000 employees, according to an internal announcement seen by Bloomberg.
Dept of $15 Billions
The company, which is restructuring an estimated $15 billion of debt, has already started laying off staff, including senior managers, and more jobs will be cut, the people said, asking not to be identified due to the sensitivity of the matter. A Bin Ladin Group representative didn’t respond to requests for comment.
Economy is battered by 50%
Saudi Arabia’s economy is being battered by a 50% slump in crude prices this year and from lock-down measures to prevent the spread of Covid-19. Faced with the prospect of ballooning deficits, the government has tripled valued-added tax, cut allowances for state employees and tapped its foreign reserves.
Wont spending any further on Mega Projects
It’s also slashed spending on some large-scale projects, depriving Bin Ladin – for decades the go-to developer for mega-projects – from its main source of revenue. Earlier this month, the government allowed private-sector companies to cut salaries by as much as 40% for up to six months, while giving employers more rights to terminate contracts.
Even before this year’s crisis, Bin Ladin was still reeling from the oil-price slump in 2015, which forced the company to cut more than 50,000 jobs in 2016. A year later, the government took a stake of about 37% in the firm from the Bin Ladin family.
That was done to “settle outstanding dues” after Bakr Bin Ladin, the half-brother of al-Qaeda founder Osama Bin Laden, was swept up in a corruption crackdown. Last month, the group hired Houlihan Lokey to help tackle its estimated $15 billion debt pile.