Top > News > Articles
UAE Companies Avoid Systematic Layoffs Amid Regional Conflict

[Editor's Note: Follow Khaleej Times live blog amid US-Israel-Iran war for the latest regional developments.]

According to recruitment industry executives, there are "no systemic permanent layoffs" occurring in the UAE as companies regard the ongoing military conflict in the region as a temporary situation.

Businesses in the UAE and the Gulf region are encouraging employees to utilize their accrued leave rather than resorting to permanent layoffs. This approach reflects a desire among business leaders to manage costs responsibly while safeguarding the long-term interests of their organizations in light of the current US-Israel-Iran conflict.

“It’s been a little over one month since the regional issues started. So far, we haven’t seen any trend of systematic permanent layoffs. This is a good sign and signals positive sentiment in the employers’ market about what the future holds. The steps taken by companies tend to indicate that almost all employers presently see this conflict as a temporary issue lasting a few weeks or months, creating momentary pressure on revenues and profitability rather than a long-term decline,” said Mohammad Osama, CEO of GRG, in an interview with Khaleej Times.

A systemic layoff refers to a widespread and planned reduction in the workforce that is integrated into an organization’s structure or operational strategy.

On Tuesday, Danube Group announced that it would not lay off any employees. “We will not lay off any employees at Danube Group. All salaries will be paid on time. Our 6,000-plus employees are not just our workforce; they are our family,” stated Rizwan Sajan, founder and chairman of Danube Group.

Sanjeev Giri, head of operations at Adecco UAE, mentioned that it is natural for employees to be concerned about potential layoffs, salary adjustments, or cost-containment measures given the challenging market conditions.

“Yet the broader picture of the UAE labour market tells a more reassuring story – one of continued growth, adaptability, and forward-looking workforce strategies,” he explained, emphasizing that the key question facing business leaders is not just how to cut costs, but how to do so responsibly while safeguarding long-term organizational capability.

He pointed out that companies recognize talent as a valuable asset that requires significant time and investment to develop. “Losing experienced employees during temporary downturns can create larger challenges when markets recover. As a result, organizations are adopting more flexible workforce strategies.”

Unpaid Leave and Salary Cuts

Giri noted that some sectors respond more swiftly to changes in demand or operational pressures. Industries such as aviation services, retail, logistics, and energy-related services often make early adjustments during market fluctuations. For companies in these sectors, workforce planning is a critical balancing act.

Sanjeev Giri elaborated that common strategies include offering voluntary unpaid leave options, temporarily reassigning employees to different projects, adjusting work schedules, or slowing down new hiring while ensuring existing teams are protected. These measures help organizations navigate short-term financial pressures while maintaining workforce stability.

Mohammad Osama indicated that the measures taken can differ significantly between industries and markets. “For example, in Saudi Arabia, especially for companies in the Western Province, we haven’t seen any impact whatsoever. Similarly, in the technology sector, companies are continuing their projects with little to no disruption.”

He added that the most extreme cases are found in the hospitality industry, where some staff have been asked to take unpaid leave until conditions improve. Other measures have included temporary salary reductions of up to 30 percent.

“However, in many other industries that haven’t faced significant impacts, business continues as usual. Some measures taken have included reduced spending on staff entertainment, business travel expenses, and, in some cases, non-essential marketing and PR,” he added.

Encouraging Use of Accrued Leave

Mohammad Osama also mentioned that certain companies are encouraging employees to use their accrued leave. “This has been seen in most companies, particularly where employees have opted to travel outside the UAE due to the current situation. While many companies have allowed their staff to work from home in Dubai, they have been more hesitant to permit remote work from abroad for various reasons, including time zone differences and access to essential connectivity tools,” he explained.

Additionally, firms with diversified business units are reallocating key staff and high-performing employees to other projects. Giri confirmed that companies are indeed encouraging employees to take their accrued annual leave.

ALSO READ

  • Salary cuts in the UAE: Know your rights as an employee

  • Many UAE firms implement hybrid, remote work policies amid ongoing regional tensions

  • UAE firms resume full operations, offer remote work while prioritizing staff safety

Advertisement

Advertisement

Recommended
UAE Announces Early Spring Break for Schools and Universities
UAE Announces Early Spring Break for Schools and Universities
Main
The UAE Ministry of Education Announces Changes to Academic Calendar and Assessments
The UAE Ministry of Education Announces Changes to Academic Calendar and Assessments
Main
The National Centre of Meteorology Forecast for Today
The National Centre of Meteorology Forecast for Today
Main

Advertisement

Advertisement

UAE jobs: Is it legal to make employees work during annual leave?
UAE jobs: Is it legal to make employees work during annual leave?
Main
UAE weather: Partly cloudy conditions; Dubai temperatures to dip to 17ºC
UAE weather: Partly cloudy conditions; Dubai temperatures to dip to 17ºC
Main
Adapting Assessment Strategies: UAE Schools Navigate Exam Season During Disruption
Adapting Assessment Strategies: UAE Schools Navigate Exam Season During Disruption
Main
How UAE students should build university profile, think beyond grades
How UAE students should build university profile, think beyond grades
Main
UAE Companies Embrace Hybrid and Remote Work Policies Amid Regional Challenges
UAE Companies Embrace Hybrid and Remote Work Policies Amid Regional Challenges
Main
Legal Rights Regarding Withdrawal of Job Offer in the UAE
Legal Rights Regarding Withdrawal of Job Offer in the UAE
Main

Advertisement

Advertisement

The UAE Extends Distance Learning Amid Regional Security Concerns
The UAE Extends Distance Learning Amid Regional Security Concerns
Main
CBSE Introduces On-Screen Marking for Class 12 Answer Books in UAE
CBSE Introduces On-Screen Marking for Class 12 Answer Books in UAE
Main
Ramadan 2026: 6 planets to align in UAE skies; how to watch
Ramadan 2026: 6 planets to align in UAE skies; how to watch
Main
Understanding Administration Fees in Dubai Rental Apartments
Understanding Administration Fees in Dubai Rental Apartments
Main
Al-Khatim Astronomical Observatory Captures Image of 'Boogeyman' Nebula
Al-Khatim Astronomical Observatory Captures Image of 'Boogeyman' Nebula
Main
UAE remote work rules explained: Hours, leave, rights, violations when working from home
UAE remote work rules explained: Hours, leave, rights, violations when working from home
Main
Man jailed in Dubai for failing drug testing rules, skipping rehabilitation
Man jailed in Dubai for failing drug testing rules, skipping rehabilitation
Main
Employee to pay over Dh290,000 to company in embezzlement case: Abu Dhabi court
Employee to pay over Dh290,000 to company in embezzlement case: Abu Dhabi court
Main
CBSE Postpones Class 10 and 12 Board Exams in Middle East Regions
CBSE Postpones Class 10 and 12 Board Exams in Middle East Regions
Main
UAE Weather Forecast: Rainfall Expected in Coastal Areas
UAE Weather Forecast: Rainfall Expected in Coastal Areas
Main
Unstable Weather Forecast in UAE: March 3-5
Unstable Weather Forecast in UAE: March 3-5
Main

Advertisement

Access Ranking
Lost Your Job in the UAE? How Borrowers Can Renegotiate Loan Repayments with Banks
Finance
Lost Your Job in the UAE? How Borrowers Can Renegotiate Loan Repayments with Banks
West Ham United's Draw Leaves Them in Relegation Danger
Sports
West Ham United's Draw Leaves Them in Relegation Danger
Carlos Alcaraz Awaits Injury Test Results Before French Open Decision
Sports
Carlos Alcaraz Awaits Injury Test Results Before French Open Decision
Storage Space Near You: How to Find the Best Warehouse or Storage Facility in the U.S.
Car
Storage Space Near You: How to Find the Best Warehouse or Storage Facility in the U.S.
The Beauty List: This Month’s Most Wanted Products
News
The Beauty List: This Month’s Most Wanted Products
“Is my job secure?” UAE firms respond to rising worker concerns
News
“Is my job secure?” UAE firms respond to rising worker concerns
The Inspiring Journey of Lee Hun: A One-Handed Pianist's Triumph Over Adversity
Healthy
The Inspiring Journey of Lee Hun: A One-Handed Pianist's Triumph Over Adversity
How to Choose an Interior Designer in Singapore: 2026 Step-by-Step Guide
Home
How to Choose an Interior Designer in Singapore: 2026 Step-by-Step Guide
HDB Renovation Ideas 2026: Room-by-Room Design Guide for Singapore Homes
Home
HDB Renovation Ideas 2026: Room-by-Room Design Guide for Singapore Homes
Resignation of FIGC President Gabriele Gravina Following Italy's World Cup Failure
Sports
Resignation of FIGC President Gabriele Gravina Following Italy's World Cup Failure
Oil Prices Decline Amid Peace Talk Expectations Between US and Iran
money
Oil Prices Decline Amid Peace Talk Expectations Between US and Iran
Anti-Ageing Treatments & Facials Singapore 2026: What Really Works for Wrinkles
Beauty
Anti-Ageing Treatments & Facials Singapore 2026: What Really Works for Wrinkles
Families with young children to receive $1,000 LifeSG credits on April 28
News
Families with young children to receive $1,000 LifeSG credits on April 28
How to get free parking in Dubai
Car
How to get free parking in Dubai
Sticky Grease on Your Stovetop? Cleaning Pros Share the Easiest Fix
Lifestyle
Sticky Grease on Your Stovetop? Cleaning Pros Share the Easiest Fix
Tennis Stars Shine at the Laureus Awards in Madrid
Sports
Tennis Stars Shine at the Laureus Awards in Madrid
Rents in Dubai: Up to Dh20,000 discount on fewer cheque payments
News
Rents in Dubai: Up to Dh20,000 discount on fewer cheque payments
Dubai's KHDA issues distance learning guide for parents: 11 key takeaways
News
Dubai's KHDA issues distance learning guide for parents: 11 key takeaways
Budget-Friendly Areas to Rent Studios in Abu Dhabi
apartment
Budget-Friendly Areas to Rent Studios in Abu Dhabi
Gold Shopping Reinvented in Dubai: Now Delivered Straight to Your Doorstep
Lifestyle
Gold Shopping Reinvented in Dubai: Now Delivered Straight to Your Doorstep

Advertisement