The Privatization and Corporatization Board (PCB) has instructed State-Owned Enterprises (SOEs) to reduce their workforce by 33 percent over the next three months, requiring companies to submit weekly progress reports on the number of staff terminated.
In a circular, the PCB said that the 33 percent reduction is part of a policy aimed at streamlining corporate headcounts to levels appropriate for each company’s operations.
Referencing an earlier circular issued on April 18, the PCB has now directed all SOEs to achieve this target within a three-month window starting from July 13.
The PCB has decided to closely monitor compliance with this directive. According to the circular, companies are required to submit updates regarding changes to their organizational size every Sunday.
The PCB noted that this directive was issued under the legal authority granted to the board by the Law on Privatization, Corporatization, Monitoring, and Evaluation of State-Owned Enterprises.
The board emphasized that all government companies, state-shareholding companies, and state-run commercial entities are legally mandated to comply with the instruction.
This measure is being implemented as part of broader efforts to reduce expenditures and enhance the operational efficiency of state-owned enterprises.
The decision to strictly enforce the April directive follows the conclusion of the internal elections of the ruling People’s National Congress (PNC).
While some companies have already begun the downsizing process, sources indicate that although voluntary redundancy packages were offered, only a small number of employees have applied for them.
Successive administrations have overstaffed state-owned enterprises. However, since President Mohamed Muizzu took office, workforce numbers have surged significantly, alongside a high number of appointments to political positions.
Despite the Information Commissioner’s order for the government to disclose the total number of political appointees under the Muizzu administration, the President’s Office has yet to release the information.
