The Saudi Slowdown: A Global Ripple Effect That’s Shaking the Architecture World
Imagine pouring years of work into a dream project, only to have it vanish overnight. That’s the harsh reality facing hundreds of architects and designers, thanks to a sudden slowdown in Saudi Arabia’s ambitious development plans. But here’s where it gets even more alarming: this isn’t just a local issue. The fallout is reaching far beyond the kingdom’s borders, leaving firms in the UK and beyond scrambling to stay afloat. And this is the part most people miss: it’s not just about canceled projects—it’s about livelihoods, reputations, and the future of an entire industry.
In late November, the Bjarke Ingels Group (BIG), a renowned Danish architecture firm, received devastating news: a ‘major’ resort project in the Red Sea area had been abruptly canceled. This single project employed nearly half of BIG’s UK workforce. While the exact location remains undisclosed, it’s one of many Saudi-based schemes now on the chopping block due to spending reviews, delays, and recalibrations. As oil prices plummet and Saudi Arabia rethinks its development pipeline, even high-profile projects like those led by BIG are being scrapped. The result? Severe financial strain for UK-based practices and, more heartbreakingly, scores of jobs hanging in the balance.
But here’s where it gets controversial: Is this slowdown a temporary hiccup or a sign of deeper systemic issues in the architecture industry? And are firms like BIG being unfairly targeted, or are they simply collateral damage in a larger economic shift?
BIG’s situation has become a lightning rod for criticism, with mass redundancy plans sparking an unprecedented protest outside its London office in Broadgate. Employees, nicknamed ‘BIGsters,’ took to the streets, not just to fight for their own jobs but to send a message to the entire industry. As one protester put it, ‘This is for everybody’—a rallying cry for all professionals facing similar threats. The demonstration highlighted a rare public show of worker solidarity, prompting questions like: How did we get here? And what’s next?
The Fantastical Megaprojects That Never Were
Saudi Arabia’s megaprojects, like NEOM’s linear city, The Line, and the Trojena ski resort, always seemed too ambitious to be true. And now, many of them are indeed falling apart. The Line, once envisioned as a 170km-long city, has been significantly scaled down, with architects working on a much shorter and less grandiose version. Similarly, Trojena, designed by Aedas and Zaha Hadid Architects (ZHA), has lost its bid to host the 2029 Asian Winter Games, with the Financial Times revealing the mountainous region won’t be ready in time. Even the Mukaab mega-cube skyscraper in Riyadh, originally designed by AtkinsRéalis, has been shelved pending a review, replaced by a far more modest proposal.
The Human Cost of Canceled Dreams
The cancellation of BIG’s Red Sea resort has had a direct and devastating impact on its London workforce. Henriette Helstrup, BIG’s London partner and managing director, confirmed that the planned redundancies followed the ‘unexpected termination of our largest project.’ While BIG claims to have handled the situation responsibly, many employees feel abandoned. Of the 203 staff at BIG’s London office, 72 are slated to lose their jobs. What’s worse, many of these employees are overseas architects on permanent contracts, with visas tied to the firm and the now-canceled project. This has sparked fierce criticism from Unite the Union, which accuses BIG of ‘disgusting’ behavior and a lack of transparency in its consultation process.
A Warning Shot for the Industry
The protests outside BIG’s office weren’t just about one firm’s missteps—they were a warning to the entire industry. A representative from the Section of Architectural Workers (SAW) bluntly told the crowd, ‘If you think you can put 70 of your employees out of a job, shame on you. Think of the damage to your reputation.’ An anonymous BIG employee added, ‘We’ve joined the union to make sure BIG recognizes our rights, because there’s been a lot happening in the office that we simply disagree with.’ This sentiment was echoed by an architect from another practice, who joined the demonstration to highlight the ‘hiring and firing culture’ in architecture, where people are often treated without respect.
The Role of Unions and Industry Bodies
The protests also shed light on the perceived inaction of industry bodies like the Royal Institute of British Architects (RIBA). As one SAW member asked, ‘Where are the people that stand up for standards in our industry? They’re not here. Because they’re never here.’ RIBA president Chris Williamson responded by acknowledging the difficult environment architects are working in, but many feel this isn’t enough. The incident has sparked a surge in unionization, with at least 90 BIG employees joining SAW/Unite in response to the threat of job cuts. Before the layoffs, fewer than 10 BIG employees were union members.
What’s Next? A Call for Sustainable Practices
So, what alternatives are there to job cuts when workloads suddenly dry up? Paul Chappell, director of 9B Careers, argues that while acting early to rebalance a practice’s size can be a responsible long-term decision, it’s crucial to consider the human impact. ‘The alternative is often a slow decline,’ he warns, ‘with practices bidding at unsustainably low fees just to keep people busy, which ultimately harms the entire profession.’
The Bigger Picture: A Hard Line Drawn
The financial ramifications of the Middle East slowdown are becoming increasingly evident. AECOM, which signed a contract to work on the Mukaab in November, reported a 42% collapse in its Middle East income. Gensler, the masterplanner behind The Line, saw its Middle East revenues drop from £24.4 million to £19.1 million. Yet, Gensler remains optimistic, having entered a ‘substantial confidential contract’ worth £216 million. But optimism aside, the reality is that some staff at Gensler have already been let go due to the slowdown.
A Thought-Provoking Question for You
As the dust settles on BIG’s controversy, one question remains: Is the architecture industry doing enough to protect its workforce in times of economic uncertainty? Or are firms like BIG being unfairly scapegoated for broader systemic issues? Share your thoughts in the comments—let’s keep the conversation going.
