The Maldivian Democratic Party (MDP) has raised strong concerns over the government's decision to lay off 14,733 employees from State-Owned Enterprises (SOEs), warning that the action directly impacts the livelihoods of more than 50,000 people.
Speaking on behalf of the party at a press conference, former chairpersons Fayyaz Ismail and Hassan Latheef criticised the administration for reckless policy shifts and misleading figures.
Fayyaz emphasised that the financial survival of thousands of families hinges on these positions. He highlighted that the directive issued by the Privatisation and Corporatisation Board (PCB) to cut 33 per cent of the SOE workforce effectively throws over 14,000 citizens onto the streets.
Recalling past economic management, Fayyaz noted that during the COVID-19 crisis, the MDP administration supported over 22,000 affected workers by spending MVR 419 million on income assistance to safeguard families and businesses.
Joining the criticism, former chairperson Hassan Latheef asserted that it was the current administration, not the previous one, that "wrong-sized" state enterprises by swelling employee numbers after taking office.
He presented figures showing that at the end of the previous administration, state companies employed roughly 30,000 workers, whereas the current count stands at 44,645. Cutting 33 percent will bring the total back down to 29,913 employees.
Hassan questioned the government's narrative, pointing out the contradiction in claiming that the MDP administration overstaffed state corporations while simultaneously aiming to "rightsize" workforce levels back to the exact same numbers.
PCB reports confirm that state enterprises employed around 34,000 people at the end of 2023. Hassan, who also served as Human Resources Minister in the first MDP government, stressed that the PCB cannot accurately determine appropriate staffing levels without first conducting comprehensive operational audits and urged the government to ensure sustainable pathways for affected workers.
The PCB issued a circular directing all state-owned companies to execute the 33 percent staff reduction within three months, starting July 13. The board announced plans to closely monitor compliance by requiring weekly staffing updates on Sundays.
While the government maintains that these cuts are necessary to lower administrative costs and enhance efficiency, layoffs have already begun, with low uptake on voluntary redundancy offers and allegations from the MDP that target lists disproportionately impact its members and supporters.
