Muizzu denies political targeting in SOE layoffs

Jun 30, 2026, 8:40 AM
President Muizzu speaks during a press conference held at the President's Office on June 29, 2026: Muizzu stated that no employee has been penalized based on their political beliefs --- Photo: President's Office

President Muizzu speaks during a press conference held at the President's Office on June 29, 2026: Muizzu stated that no employee has been penalized based on their political beliefs --- Photo: President's Office

President Mohamed Muizzu has dismissed allegations that employees are being terminated from state-owned enterprises (SOEs) based on their political affiliations.

Speaking at a press conference held at the President's Office yesterday, Muizzu defended the recent layoffs at SOEs, attributing the necessity of these measures to the economic fallout from the conflict in Iran. 

"I have fulfilled my promise. When our administration began, everyone in the companies—excluding those in political positions as mentioned—remained in their posts. They stayed for many months; some have been there for over a year, and some have remained for up to two years," Muizzu said.

He claimed that the conflict-driven economic situation necessitated staff reductions, adding that the process is being conducted in accordance with established policies and standards. 

"The measures being taken are not a violation of my pledge. The current exercise is an effort to reduce the size of these companies. I have certainly not instructed anyone to target individuals based on their political views," he said.

Muizzu insisted that he does not view the current staff reductions as a reversal of his commitment to job security. He argued that employees were retained in line with his promise and that the current restructuring is a separate matter. 

"Should an employee be allowed to behave however they wish? For the sake of argument, if someone commits theft from the company or damages its assets, should they not be dismissed just because I made a promise?" he questioned.

"I do not believe any rational person would interpret it that way."

Muizzu also highlighted other austerity measures taken by the government, citing the reduction of salaries for political appointees as an example. He noted that the 10 percent salary cut for political positions has been in effect for nearly two years.

Muizzu claimed that these figures would be reflected in statistics published by the Finance Ministry. However, data released by the ministry indicates a surge in state spending on employee salaries over the past two years. 

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