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NEOM considers major changes for workforce

Over 1,000 workers face relocations and potential layoffs as NEOM audits costs.

July 18, 2025 at 10:25 AM

Saudi considers NEOM job cuts, relocations amid cost pressures

Saudi Arabia's ambitious NEOM project faces potential layoffs and relocations.

NEOM considers significant workforce changes amid cost management efforts

Saudi Arabia's NEOM project is planning major workforce changes. More than 1,000 employees may be moved to Riyadh and another 1,000 could be laid off as part of a cost-control strategy. This move indicates a shift away from former policies that kept staff on-site at the remote construction area. Employees relocated will likely lose benefits tailored for the challenging location, effectively reducing their salaries. The Saudi Public Investment Fund, the main backer of NEOM, continues to finance its expansive vision, which includes several high-profile developments like The Line and luxury tourism spots.

Key Takeaways

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NEOM plans to relocate over 1,000 employees to Riyadh.

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Job cuts of up to 1,000 staff are also on the table.

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Relocations may lead to reduced employee benefits.

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Former policy keeping staff on-site is likely being scrapped.

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Public Investment Fund continues to finance the project.

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Financial oversight and cost management are a priority.

"This is a significant shift in how NEOM operates, focusing on efficiency and cost."

Highlighting NEOM's move towards financial accountability.

"Employees relocating to Riyadh will face a de facto pay cut with lost benefits."

Pointing out the challenges faced by staff amid the changes.

The potential job cuts and relocations at NEOM signal a critical moment for an ambitious project that aims to redefine urban living in Saudi Arabia. With significant financial backing from the Public Investment Fund, scrutiny over spending and operational efficiency has intensified. If these measures proceed, they might change the nature of work and the benefits associated with one of the world’s most monitored development projects. As NEOM adjusts to financial pressures, it raises questions about the sustainability of such grand visions without proper oversight.