Masdar, Abu Dhabi's flagship clean energy company, has shed 9 per cent of its staff in the wake of job cuts at other government-owned companies.
Other UAE businesses have downsized this year amid the global economic downturn, including Abu Dhabi's Aldar Properties, which cut 24 per cent of its staff last month.
And Shuaa Capital, a financial institution based in Dubai, announced a second round of cuts this week.
"As an agile and forward-leaning organisation working in a fast-moving sector Masdar, as part of its annual business planning process, has identified ways to enhance the efficiency and effectiveness of the organisation," the company said.
"Our long-term strategic vision, mission and core objectives remain unchanged."
The cut in staffing at Masdar follows its decision last year to shave more than a quarter from the budget of Masdar City, the planned carbon-neutral hub on the edge of the capital.
Developers say the pace of building Masdar City, now valued at US$16 billion (Dh58.77bn), will follow demand from the market.
Yesterday Masdar, which builds solar arrays and invests in alternative energy companies in addition to running a local university, declined to say how many jobs it had cut.
"It's really become central to the notion that Abu Dhabi is more than hydrocarbons, that Abu Dhabi is sustainable and so on," said a consultant who requested anonymity.
"The problem is that it's not money-making."