Dubai: Mashreqbank, Dubai's third-biggest lender, plans to move nearly half of its employees to cheaper locations and allow some others to work from home as part of a dramatic reorganization, according to sources.
While some of the affected employees have been notified. A Mashreq spokesperson declined to comment when contacted by Gulf News.
The bank notified employees this week that it will be shifting jobs to locations including India, Egypt or Pakistan, the people said, asking not to be identified because the information isn't public.
Mashreq will also eliminate a significant number of existing roles and create new positions for staff moving to what it calls "centers of excellence," they said.
Mashreq and its subsidiaries employed almost 5,000 people as of September 2019.
Outsourcing and relocation
While shifting back-office operations cheaper locations is a common practice among many banks including UAE banks, hower the scale of the planned move by Mashreq is said to be huge.
Sources said while some employees will be permanently allowed to operate remotely in the offshore centers, the company is planning to lower salaries for an additional 7 per cent of its remaining UAE staff by turning those jobs into work-from-home positions.
The relocation plan is expected to be completed in three phases by October this year. The changes will exclude Mashreq's Emirati employees, sources said.