Gov’t Directs State-Owned Companies to Slash Workforce by One-Third

In a sweeping move to overhaul the financial health and operational efficiency of government-owned corporations, Finance Minister Moosa Zameer has formally instructed state-owned enterprises to reduce its workforce by 33 percent. 

The directive, issued in a letter to Privatization and Corporatization Board (PCB) President Mohamed Anas, is described as a critical step to strengthen the governance and management of these public entities.

According to a document released by the Finance Ministry, this significant staff reduction is not an isolated measure but an escalation of an ongoing austerity campaign. 

“These measures are in addition to the PCB’s earlier directives to reduce corporate costs, adopt stronger spending practices and improve financial management,” the statement read.

Previous cost-cutting initiatives have included a freeze on new hiring, stringent controls on pay raises and benefits, a near-total halt on promotions unless absolutely necessary, and severe cuts to non-essential spending such as travel, overtime, and company events.

Minister Zameer’s letter explicitly urges companies to prioritise improving operational efficiency and strengthening human resource management. The goal is to compel these corporations to operate in a financially sustainable manner, moving away from reliance on government subsidies and towards self-sufficiency.

Crucially, the Ministry has coupled the downsizing order with a mandate to reform hiring practices. The PCB has been asked to strengthen the merit-based policy of appointment based on education, skills and abilities. This indicates a future focus on a leaner, more highly skilled workforce. 

The Ministry emphasised that the ultimate objective is to select the most suitable candidates for the jobs and facilitate the companies to continue their operations in the most efficient manner. 

The PCB has been directed to ensure strict compliance with these new rules, signaling a top-down approach to implementing this transformative corporate reform.