Agility: Severe Staff Cuts

22.03.2010 Kuwait

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Kuwaiti firm Agility has reportedly begun implementing a program of severe staff cuts, with between 500 and 600 employees at
its offices in and outside Kuwait laid off in the past few days. One official warned that this is just the beginning of the firm's major staff
restructuring program, with thousands more personnel set to be laid off over the next few months, reported Al-Qabas.
The official listed a number of reasons for the timing and scope of the restructuring program, including Agility's expectation of a slowdown
in large new contracts following the international economic crisis, with contracts not predicted to return to previous billion-dollar levels for
some time.
The associated reduction in the demand for logistical services has seen a number of major companies introducing similar rationalization
strategies, downsizing their operations and introducing heavy staff cuts.
Another reason behind Agility's decision is that its previous agreements with the US Defense Department for the provision of various
logistical services may have been overestimated, while the ongoing reductions in US troop numbers in the region means a reduction in the
services required. Price inflation is also cited as a reason for rationalizing and tailoring services, with the company wanting to trim its
services to a more manageable and cost-effective level.

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