Nakheel, a property developer owned by Dubai World, has made about 400 more staff redundant as the company continues an overhaul brought on by the downturn in the property sector.

The redundancies were staggered over the past two weeks and are on top of the 500 jobs that were cut last December, a source close to the company said.

'We were given a redundancy package of six months' pay' one former staff member who was laid off last week said.

The economic downturn has battered nearly every Dubai developer, with property prices and sales falling sharply. Developers, who were mostly reliant on off-plan sales to finance the construction of their projects, have struggled to collect payments, leading to rising defaults, while payments to suppliers have been delayed.

The National