State-Owned Enterprises Given Three Months to Cut Workforce by One-Third
- State-owned enterprises must cut their workforce by 33 percent within three months, effective 13 July.
- The PCB directive requires weekly employee updates and suspension of non-essential recruitment, promotions, and discretionary spending.
- HDC and Fenaka have launched voluntary separation programmes offering three months' salary as compensation.
State-owned enterprises have been ordered to reduce their workforce by 33 percent within three months as part of a wider effort to lower operating costs and align staffing levels with institutional requirements.
The directive took effect on 13 July and was issued through a circular signed by Privatization and Corporatization Board (PCB) President Mohamed Nizar. Companies must provide the PCB with updated employee figures every Sunday to allow the reductions to be monitored.
The decision follows instructions from the Ministry of Finance and Public Enterprises, which has linked the workforce reductions to improving corporate management and maintaining staffing levels appropriate to each company’s operations.
The Ministry is also tightening recruitment procedures across state-owned enterprises, with greater consideration to be given to applicants’ educational qualifications and skills.
Some companies have already introduced voluntary separation programmes. Housing Development Corporation (HDC) and Fenaka Corporation have offered employees who choose to leave compensation equivalent to three months’ salary.
The PCB has also instructed companies to suspend non-essential recruitment and promotions, limit overtime and unnecessary travel, and reduce discretionary expenditure. New appointments may only be made where they are considered essential to operations.
Implementation data will continue to be shared with the Ministry of Finance and Public Enterprises as the government monitors compliance with the cost-reduction measures.
