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Middle East Edition
16th April 2024
 
THE HOT STORY
UAE government employees directed to work remotely today
All government employees in the UAE have been directed to work remotely on Tuesday, April 16 due to unstable weather conditions. Certain federal employees have been exempted from remote work if their jobs require presence at the workplace. Meanwhile, the Ministry of Human Resources and Emiratisation has advised private sector companies in areas expected to be most affected by the extreme weather conditions to prioritise the safety of workers in outdoor workplaces. It has emphasized the importance of ensuring worker health and safety during commutes and verifying the availability of occupational health and safety requirements. Elsewhere, the Council of Ministers General-Secretariat in Qatar has also announced the implementation of remote work for all employees in ministries, government agencies, public bodies, and institutions due to expected extreme weather conditions. The decision excludes employees in the military, security, and health sectors, as well as those whose work requires them to be present at the workplace. The Council urges citizens and residents to rely on reliable sources for information and follow safety instructions.
STRATEGY
Microsoft to invest $1.5bn in Emirati AI firm G42
Microsoft plans to invest $1.5bn in G42, an artificial intelligence firm based in the United Arab Emirates. G42 has divested its investments in China and will now use Microsoft's cloud services and sell Microsoft services that use powerful AI chips. The agreement includes protections on the AI products shared with G42 and an agreement to remove Chinese gear from the Emirati firm's operations. Microsoft President Brad Smith will join G42's board and stated that "the US is quite naturally concerned that the most important technology is guarded by a trusted US company."
LEGAL
Tesla to cut more than 10% of its workforce
Tesla will lay off more than 10% of its global electric vehicle workforce, which had 140,473 employees as of December. Founder Elon Musk told staff: "There is nothing I hate more, but it must be done. This will enable us to be lean, innovative and hungry for the next growth phase cycle." The company is set to report its quarterly earnings later this month but has already reported a decline in vehicle deliveries in the first quarter, its first in nearly four years.
HIRING
PageGroup cuts jobs amid challenging market
PageGroup has continued to cut jobs in a challenging market, reducing its fee earner headcount by 1.7% in the first quarter of 2024. The company has slashed over 1,300 positions since 2022. The global jobs market slowdown and technology sector redundancies have contributed to the job cuts. Despite the challenges, PageGroup's CEO intends to maintain headcount at existing levels to capitalise on market improvements. The company's gross profits decreased by 12.8% in Q1, driven by poor trading in Continental Europe. The uncertain economic conditions have also impacted profitability, with longer hiring processes and declining profits in both permanent and temporary recruitment. Other recruiters, such as Robert Walters and Hays, are also expected to announce updates on their trading performance.
CORPORATE
Ma'aden approves buyback of 5.69 million shares
The board of Saudi Arabia's mining company Ma'aden has approved the buyback of 5.69 million shares under its employee stock incentive long-term plan. The shares will be retained as treasury shares, financed from the company's internal resources. Ma'aden will need approval at the upcoming extraordinary general assembly. The repurchased shares will not have voting rights. In February, the company reported an 83% YoY drop in its 2023 net profit to 1.58 billion riyals.
TECHNOLOGY
Significant developments in Oman's postal sector
The postal sector in Oman has undergone significant developments and changes in recent years. Oman Post, affiliated with Asyad Group, has embraced the latest technologies to keep up with the digital transformation in other sectors. Sayyid Nasr bin Bader Al Busaidi, Head of the Post Unit at Oman Post, highlighted the sector's automation and modernisation, expanding postal services to individuals, government departments, and private sector establishments across the Sultanate. The use of artificial intelligence (AI) technologies has opened new possibilities for improving postal services, offering innovative solutions and enhancing security. Oman's postal sector also provides various financial services, including money transfers, bill payments, insurance, and electronic payment services. As Al Busaidi stated: "The postal sector is one of the sectors that [has] seen a qualitative shift during the past years."
INTERNATIONAL
India emerges as global hiring hotspot
Wealth surge, China pivot, and a fear of missing out have made India a new global hiring hotspot. The employment market is booming, with stories of ghosted employers, million-dollar trading jobs, and private bankers demanding up to a 50% pay hike. Signs of expansion are everywhere, with international firms like Optiver and Citadel Securities opening offices in Mumbai and Gurugram. Local firms like ICICI Securities are also growing rapidly. India's economy is expanding at over 7% per annum, and the government is making it easier to do business. The market is especially hot in the wealth industry, with private bankers and wealth managers seeing significant pay increases. However, there are doubts about the sustainability of the boom and concerns about the rising pay scales. Despite this, India's moment as a global hiring hotspot seems to have arrived.
Four-day week 'risks widening inequalities'
A four-day working week risks "widening existing inequalities," according to analysis commissioned by the Welsh government ahead of a potential pilot scheme. The group tasked with assessing the working pattern said: “Given the different gender, race and other characteristics of different workforces in the public sector, there is potential for negative and differential impacts on particular protected characteristics.” Among suggestions put to the Welsh government, the group recommended using the terms "shorter working week" or "shorter working day" as a "four-day week" could be "widely misinterpreted and taken in its literal sense." Future Generations Commissioner Derek Walker is among those who have backed calls for a four-day week pilot, saying: “An outdated industrial age model means the time is ripe to explore how things can be done differently.”
EEOC urges Workday to face class action lawsuit
The US Equal Employment Opportunity Commission (EEOC) has filed an amicus brief urging Workday, the human resources software firm, to face a proposed class action lawsuit. The lawsuit alleges that Workday violated federal anti-bias laws by using AI-powered software to discriminate against job applicants for other employers. The EEOC argues that Workday qualifies as an "employment agency" under Title VII of the Civil Rights Act of 1964. The lawsuit was filed by Derek Mobley, who claims he was turned down for over 100 jobs due to his race, age, and mental health conditions. Workday denies any wrongdoing. The EEOC warns employers about the legal liability of discriminatory AI tools. The case is scheduled for a hearing on May 7.
Companies in Europe forced to cut jobs due to inflation and war impact
The highest inflation in decades and the impact of the war in Ukraine have led to layoffs and hiring freezes in companies across Europe. Automotive suppliers like Bosch and Continental, as well as banks like Barclays and Deutsche Bank, are among those making significant job cuts. Retailers such as H&M and Sainsbury's are also closing stores and reducing their workforce. Tech companies like Ericsson and SAP are restructuring and reducing positions. Other industries affected include industrials, engineering, and consumer goods. According to an internal memo seen by Reuters, one company plans to cut around 1,000 jobs globally in 2024.
 


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