Al Mojil to downsize staff after court order

Mohammad Al Mojil Group (MMG) will downsize its workforce after the seizure of its sites following a court order, which has adversely affected business operations, the company said in a statement to Tadawul on Sunday.

The troubled contractor will cut nonessential expenditure to support critical operations, by either sending employees on unpaid vacations for an indefinite period of time, or declaring job roles redundant.

MMG’s management and remaining staff will go on unpaid leave when needed, the statement said.

The company addressed the ministry of labor on the downsizing back on Jan. 9.

Last month, a court ordered MMG to auction 21 percent of its fixed assets. Another directive dated Nov. 22, 2016 banned the firm from removing assets from its buildings.

Earlier in January, auctioneers assigned by a Dammam court placed an auction notice on the gate of MMG’s compound and warehouse.