search-icon-hover
Home > News List > Article
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

Read More

Advertisement

Advertisement

Recommended for You
Understanding Administration Fees in Dubai Rental Apartments
Understanding Administration Fees in Dubai Rental Apartments
UAE Weather Forecast: Rainfall Expected in Coastal Areas
UAE Weather Forecast: Rainfall Expected in Coastal Areas
Legal Rights Regarding Withdrawal of Job Offer in the UAE
Legal Rights Regarding Withdrawal of Job Offer in the UAE

Advertisement

Advertisement

The National Centre of Meteorology Forecast for Today
The National Centre of Meteorology Forecast for Today
Dubai's STS Group Adjusts Transport Fees Amid Remote Learning Challenges
Dubai's STS Group Adjusts Transport Fees Amid Remote Learning Challenges
NASA's Historic Artemis II Mission: Astronauts Launch for Lunar Flyby
NASA's Historic Artemis II Mission: Astronauts Launch for Lunar Flyby
Abu Dhabi Police Issues Rainy Weather Driving Warnings
Abu Dhabi Police Issues Rainy Weather Driving Warnings
The UAE is experiencing a brief spell of rainy weather starting Tuesday, March 31, and expected to continue until Wednesday, April 1, 2026. In light of these conditions, Abu Dhabi Police have taken to X to advise drivers against parking under bridges and in tunnels during the rainfall.
Al-Khatim Astronomical Observatory Captures Image of 'Boogeyman' Nebula
Al-Khatim Astronomical Observatory Captures Image of 'Boogeyman' Nebula
Understanding the Process for Challenging Unfair Dismissal in the UAE
Understanding the Process for Challenging Unfair Dismissal in the UAE

Advertisement

Advertisement

Queen Elizabeth's School in Dubai Sports City Introduces Scholarship Program for Talented Students
Queen Elizabeth's School in Dubai Sports City Introduces Scholarship Program for Talented Students
Published: Thu 2 Apr 2026, 7:42 PM
Indian Schools in the UAE Adapt to Ensure Continuity Amid Ongoing Conflicts
Indian Schools in the UAE Adapt to Ensure Continuity Amid Ongoing Conflicts
As the new academic year begins amidst the ongoing US-Israel-Iran war, several Indian schools in the UAE are implementing practical solutions to keep students on track. With many families reluctant to send their children back to campus, schools are taking the initiative to deliver textbooks directly to homes, a move that has been positively received by parents eager to maintain educational continuity.
Adapting Assessment Strategies: UAE Schools Navigate Exam Season During Disruption
Adapting Assessment Strategies: UAE Schools Navigate Exam Season During Disruption
The UAE Extends Distance Learning Amid Regional Security Concerns
The UAE Extends Distance Learning Amid Regional Security Concerns
Unstable Weather Forecast in UAE: March 3-5
Unstable Weather Forecast in UAE: March 3-5
The UAE Ministry of Education Announces Changes to Academic Calendar and Assessments
The UAE Ministry of Education Announces Changes to Academic Calendar and Assessments
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
Working from home in the UAE does not mean fewer rules or flexible obligations. Employees are still bound by the same working hours, performance standards and legal responsibilities as office-based staff.
CBSE Postpones Class 10 and 12 Board Exams in Middle East Regions
CBSE Postpones Class 10 and 12 Board Exams in Middle East Regions
UAE Announces Early Spring Break for Schools and Universities
UAE Announces Early Spring Break for Schools and Universities
Man jailed in Dubai for failing drug testing rules, skipping rehabilitation
Man jailed in Dubai for failing drug testing rules, skipping rehabilitation
A 32-year-old Gulf national, identified by his initials H. M., has been sentenced to one year in prison for violating Dubai’s drug testing rules and failing to take advantage of a legal opportunity to rehabilitate.
UAE Companies Embrace Hybrid and Remote Work Policies Amid Regional Challenges
UAE Companies Embrace Hybrid and Remote Work Policies Amid Regional Challenges

Advertisement

Popularity Rankings
Greenview Cafe's Transition: From Far East Plaza to Affordable Dining in Ang Mo Kio
For decades, Greenview Cafe has been a popular dining destination in town, known for its affordable prices.
Greenview Cafe's Transition: From Far East Plaza to Affordable Dining in Ang Mo Kio
The Inspiring Journey of Blood Donation Advocates
How many times have you donated blood?
The Inspiring Journey of Blood Donation Advocates
Surging Demand for European Routes Among Asian Airlines Amid Middle Eastern Travel Disruptions
HONG KONG — Major Asian airlines are experiencing a surge in demand on European routes as travelers increasingly avoid disrupted Middle Eastern hubs. Analysts suggest that this trend may continue even after the Iran conflict comes to an end.
Surging Demand for European Routes Among Asian Airlines Amid Middle Eastern Travel Disruptions
18 upcoming new launch condos in 2026 — where they are and the ones to watch
18 upcoming new launch condos in 2026 — where they are and the ones to watch
How to choose a renovation company in Singapore
The most important factors to focus on—right at the core of the decision—are proper licensing, proven experience, transparent quotations, clear contracts, and reliable communication. These elements determine whether your renovation journey becomes a smooth transformation or a costly lesson.
How to choose a renovation company in Singapore
Kampong Gelam shophouse sales drop sharply; most buyers now locals: URA
Kampong Gelam shophouse sales drop sharply; most buyers now locals: URA
What’s Missing in Your Home? Designers Say This One Thing Makes All the Difference
What’s Missing in Your Home? Designers Say This One Thing Makes All the Difference
UAE Sees Surge in Natural Fertility Solutions as Infertility Rates Rise
UAE Sees Surge in Natural Fertility Solutions as Infertility Rates Rise
Dubai updates two-year residency visa rule for property investors
Analysts note that the current momentum in Dubai’s property market is increasingly driven by long-term investment strategies rather than short-term speculation. Rising transaction values and larger average deal sizes suggest continued confidence in the city’s real estate landscape.
Dubai updates two-year residency visa rule for property investors
Discover Dubai’s Best Hair Extensions for Stunning Looks
Discover Dubai’s Best Hair Extensions for Stunning Looks
2026 BMW 760i Review: How Hybrid Power Combines With Executive-Class Performance
2026 BMW 760i Review: How Hybrid Power Combines With Executive-Class Performance
Women-Only Beach, Night Swim Zones: Dubai’s Al Mamzar Corniche Set to Open Soon
Women-Only Beach, Night Swim Zones: Dubai’s Al Mamzar Corniche Set to Open Soon
How to Make Vegetables More Delicious? Experts Share the Easiest Cooking Tip
How to Make Vegetables More Delicious? Experts Share the Easiest Cooking Tip
Daniel Radcliffe's Son Unaware of His Iconic Role as Harry Potter
Daniel Radcliffe's young son is blissfully unaware that his father played the famous character Harry Potter. The 36-year-old actor, who has a son turning three in April with his partner Erin Darke, shared insights about his attempts to explain his profession to the little one.
Daniel Radcliffe's Son Unaware of His Iconic Role as Harry Potter
Best Residential Areas to Live in Dubai: Top Places for Expats, Families, and Investors
Best Residential Areas to Live in Dubai: Top Places for Expats, Families, and Investors
Mortgages for Freelancers in the UAE (2026 Guide): Eligibility, Requirements & Process
Mortgages for Freelancers in the UAE (2026 Guide): Eligibility, Requirements & Process
The Beauty List: This Month’s Most Wanted Products
The Beauty List: This Month’s Most Wanted Products
Over 84,500 people have signed Advance Medical Directive so far
Over 84,500 people have signed Advance Medical Directive so far
How to Stack Spends and Get More Miles on Your Credit Card
How to Stack Spends and Get More Miles on Your Credit Card
Gold Shopping Reinvented in Dubai: Now Delivered Straight to Your Doorstep
Gold Shopping Reinvented in Dubai: Now Delivered Straight to Your Doorstep

Advertisement