Saudi Arabia Hits Reset on NEOM’s ‘The Line’ as Costs Surge and Job Cuts Loom

A bold vision meets a real-world budget check

Saudi Arabia’s futuristic city project, NEOM, is facing a slowdown. Not a full stop—but a clear reset. The flagship sub-project, The Line, once promoted as a game-changing model for urban living, is now under review.

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Why?

Because reality—especially financial reality—is catching up with ambition.

What’s changed? A lot.

When Saudi Crown Prince Mohammed bin Salman unveiled The Line in 2021, the pitch was unforgettable: a 170-kilometer linear city, no roads, no cars, powered entirely by clean energy. A vertical metropolis stretched across the desert like a giant mirrored ribbon.

Fast-forward to mid-2025, and multiple reports suggest that projected costs have surged well beyond initial estimates. The Wall Street Journal cites internal sources claiming the full buildout of NEOM could reach $8.8 trillion—a staggering leap from the originally publicized $500 billion.

Even for an oil-rich kingdom with deep sovereign wealth, that’s a number that raises eyebrows.

Job cuts, relocations, and strategic slowing

Sources close to the matter say Saudi officials are considering cutting or relocating up to 2,000 NEOM employees. About 1,000 staff may be reassigned to Riyadh, potentially losing the benefits that came with working onsite—like housing, meals, and transport.

Another 1,000 roles may be under review or at risk, according to people familiar with internal planning. The move is part of a larger cost-control audit, reportedly directed by the Public Investment Fund (PIF), which finances the NEOM initiative.

It’s a shift from the breakneck pace NEOM initially promised.

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The consultants step in

In an effort to rein things in, Saudi authorities have hired external consultants to review the design and execution plans for The Line. This includes feasibility checks on core infrastructure, project phasing, and cost-benefit analysis.

Put simply: they’re asking the hard questions now.

• What’s viable long-term?
• What should be delayed, scaled back, or scrapped?
• Is the original 2030 target still even remotely realistic?

Insiders suggest the scope may be significantly narrowed, with certain phases pushed well beyond 2040—or even 2050.

So is The Line canceled? Not exactly.

There’s no official word from NEOM or the Saudi government about halting the project. Construction is still ongoing. Drone footage shows foundational work underway. Job postings continue in select departments. But momentum has slowed, and internal restructuring shows that the leadership is rethinking how to proceed—without blowing the budget or public trust.

This isn’t a pause. It’s a recalibration.

And it might be a necessary one.

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A reminder that mega-projects often evolve

NEOM isn’t the first major urban project to face a mid-course correction. From Masdar City in the UAE to Songdo in South Korea, cities designed from scratch often start with sweeping ambitions and scale down as real-world factors kick in.

But Saudi Arabia’s goals remain rooted in Vision 2030—a plan to diversify its economy, reduce dependence on oil, and position the Kingdom as a hub for innovation and tourism.

NEOM, even in a leaner form, still plays a central role in that strategy.

Why the world is watching

The Line isn’t just about futuristic buildings or AI-run transport systems. It’s a global experiment in urban planning, environmental sustainability, and political branding.

Whether it becomes a case study in visionary success or overreach will depend not just on how it’s built—but how it’s managed from here.

Consultants coming in. Budgets being reviewed. Staff being moved. These aren’t red flags—they’re signals of a project growing up.

Bottom line? NEOM is adjusting, not abandoning.

Saudi Arabia isn’t walking away from The Line. It’s just putting on the brakes—maybe for the first time since this desert utopia was announced. And that says a lot.

Recalibrating scope, addressing cost overruns, and reducing internal bloat may not sound as exciting as mirrored skyscrapers in the sand. But they’re necessary steps if the Kingdom wants NEOM to be more than just a dazzling idea on paper.

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