More cuts at Dubai state firm

Working for the government no longer seems like such a safe option - at least in Dubai. State-owned investment company Dubai World has announced its intention to cut 100 staff.

Dubai World encompasses a wide range of firms, including port operator DP World and its private equity arm Istithmar World, and as at 2006 (the latest publicly available figure) employed over 50,000 people in 100 countries worldwide.

The latest cuts are to affect the corporate services division of the group, and represent a 10% reduction in headcount. This follows on from Istithmar World's decision to reduce its investment team by 13 employees - or 10% - in January.

Nakheel, a property developer which is also part of Dubai World, cut 500 staff - or 15% of its workforce - in November.

Management level staff are unlikely to be affected by Dubai World's lastest move, which covers mid- and lower level employees.

Dubai World is keen to point out that the redundancies follow a prolonged period of business expansion and that it aims to "bring new efficiencies in its operations and prepare for future growth opportunities".

Sovereign wealth fund Dubai International Capital also laid off seven members of its investment team in October 2008.