Thousands of layoffs expected from world's largest building site

Saudi Arabia is home to the world's largest construction site, known as the Neom megaproject, but its impressive workforce may be about to experience a major setback.

The project saw the introduction of consulting firms, brought in by the Public Investment Fund to assess the project's feasibility. It came at a time when officials were grappling with economic stress that has the potential to see the downsizing of the force at the site.

The Neom project largely consists of 'the Line,' which is a 105-mile urban development, serving as the cornerstone of the region's economic diversification agenda for 2030. With aims to house 9 million people, the line is set to be an ultimate ultra-modern, zero-emission environment that reduces the area's reliance on oil.

Although now, as costs escalate and oil revenues reduce, this construction process has been slower, and the entire project is at risk. The public investment fund has initiated a review process that could not only cause damage to the workforce but also hinder the ambitions of Saudi Arabia as it attempts to reinvent its image to the rest of the world.

According to Semafor, following the consulting process, sources at Neom were taking into account the idea of slashing the numbers within the workforce. A part of this involves relocating over 1,000 employees to Riyadh in an attempt to control rising costs.

Right now thousands of workers, 2,800 to be exact, are housed at the construction site, where they live in custom-built accommodation. This was put in place to avoid them commuting through the harsh desert conditions on a daily basis.

Neom spokesperson Sahar Al-Anbar took to LinkedIn to share: "Change can be challenging, but firstly, let us establish that Neom is more than just a development project; it represents an ambitious national vision that is a key part of Saudi Arabia's development strategy. It's natural for a project of this scale to go through periods of review and adjustment.

"These actions are actually reassuring and reflect responsible management. By reassessing resource allocation, Neom takes a proactive approach to stay in line with its ambitious long-term objectives."

It doesn't come as a surprise for many, as Neom has been battling against many allegations of mistreating their workers. Just last October, an ITV documentary revealed that an alleged 21,000 foreign workers had in fact lost their lives as a part of the Saudi Arabia projects, with over 100,000 missing since 2017.

Currently, workers live on the construction site, where custom-built accommodation has been placed to make sure employees don't have to commute daily into the desert. As of April, about 2,800 workers were housed at the site, Neom's website said.

In light of these major changes with the project's workforce, Sahar Al-Anbar further commented: "Handling challenges in large-scale projects requires flexibility and a readiness to adapt. The ability to make strategic adjustments is a critical aspect of successful project delivery. It's encouraging to see Neom prioritise thoughtful planning and responsiveness, which are essential in bringing this visionary concept to life!

"Lastly, it's important to note that meals, schools, housekeeping service, etc., are provided as part of the remote-site allowance policy and are not standard benefits. Employees will still receive their current pay packages when moving to Riyadh."