The Saudi Binladin Group has reportedly asked its circa 17,000 Saudi national staff to either resign or wait for alleged delayed payments plus a compensation package equivalent to two months' salary.
Binladin has laid off around 77,000 foreign workers and plans to cut thousands of jobs held by Saudi nationals, according to local media reports.
Saudi Gazette cited company sources as saying Saudi employees have been told to "quit or wait". The source did not say how long those staff would have to wait.
The company's dues have reached more than $1.2bn (SAR4.8bn) payable in 2017 - and a further $148.6m (SAR595m) payable in 2018, Arabian Business reported, citing the Saudi Gazette.
Yesterday, in an emailed statement to ConstructionWeekOnline, Yaseen Alattas, chief communications officer at Binladin Holding Co, said manpower adjustment is "normal routine".
He said: "Our manpower size is always proportional to the nature and scale of the undertaken projects, along with the time spans required to complete them.
"Adjusting the size of our manpower is a normal routine especially whenever projects are completed or near completion.
"Most of the released jobs had initially been recruited for contracted projects with specific time frame and deliverables," Alattas continued.
"We do understand that manpower reductions are never easy for all involved.
"However, the Group is honouring its commitments and the affected employees have already received their full compensations and any other entitlements in accordance with the applicable laws.
"We will honour the same commitment in case further manpower is released.”
Meanwhile, security authorities are reportedly investigating an incident where workers of Binladin set fire to company buses in protest over job cuts and salary delays.