Nakheel has merged the project teams working on its Waterfront and Palm Jebel Ali developments in a further sign that the financial crisis is taking its toll on the property sector.

The move was part of a restructuring process being carried out across the entire company and would not result in any job cuts, the property developer said.

However, a person familiar with both projects said further consolidation would lead to a second wave of redundancies as the company tried to further cut costs.

The source did not say when the redundancies would happen or how many jobs would be lost. 'We’re going to be restructuring, so will have to make a few redundancies,' the source said.

The National