The Privatization and Corporatization Board (PCB) has instructed government-owned companies to reduce their workforce by 33 percent over the next three months.
The directive requires the reduction to be implemented from July 13, with the PCB setting a specific deadline for state-owned enterprises to meet the target.
The board had initially announced the workforce reduction plan in April. Under the latest circular, companies are required to bring their staffing levels down to what the PCB considers an appropriate level based on the size and operational needs of each organization.
Several state-owned companies have already begun taking measures to reduce their workforce. Housing Development Corporation (HDC) and FENAKA, for example, have offered voluntary separation packages that include three months of salary for employees who choose to leave their jobs.
The PCB will closely monitor the implementation of the directive. Companies have been instructed to submit weekly updates detailing changes to their workforce to the board every Thursday.
The workforce reduction plan follows President Dr Mohamed Muizzu’s announcement that the government would take steps to reduce staffing levels at state-owned enterprises after the Local Council Elections. The President said the election results demonstrated public dissatisfaction with the existing situation and that corrective measures would therefore be taken.
The plan forms part of broader government efforts to improve the efficiency and financial management of state-owned companies. Earlier directives included measures to control salary and allowance expenses, restrict promotions where they are not essential, halt new recruitment, reduce overtime work, cancel unnecessary activities and limit travel and other discretionary spending.
The Finance Ministry has previously said the measures are intended to reduce operating costs, promote more disciplined spending and strengthen the financial management of government-owned companies.
