PCB Orders State‑Owned Enterprises to Shed One‑Third of Workforce Within Three Months

The Privatization and Corporatization Board (PCB) has mandated that all government‑owned companies reduce their employee headcount by 33 percent, with the cut to take effect from the 13th of this month and be completed within the next 90 days.

The directive repeats a circular first issued by the PCB in April, which had already urged state‑owned firms to streamline staffing. On Tuesday the PCB released a follow‑up notice setting a firm deadline and requiring firms to submit weekly head‑count updates every Sunday so the board can monitor compliance in real time.

Several entities have begun acting ahead of the mandate. Housing Development Corporation (HDC) and Fenaka Corporation announced voluntary separation packages, offering departing employees three months’ salary as an incentive to leave willingly. The PCB maintains that the reduction is necessary to keep workforces adequate while improving overall efficiency.

President Dr Mohamed Muizzu linked the move to the recent local council elections, stating that the electorate’s dissatisfaction signalled a need for decisive action. Then‑Finance Minister Moosa Zameer had originally pressed the PCB on 17 April to enact the 33 percent cut, insisting that it would strengthen corporate governance and financial management.

In a statement shared with the press, the Finance Ministry noted that the latest order builds on earlier cost‑containment measures—including pay freezes, promotion restrictions, hiring bans, overtime caps, cancellation of non‑essential events, and trimmed travel and discretionary spending—aimed at restoring fiscal discipline across the state‑owned sector.

The PCB warned that non‑compliance will trigger further oversight, and it will continue to publish weekly compliance reports to ensure transparency as the downsizing proceeds.