42,000 employees currently working in SOEs: Zameer
The Ministry of Finance has directed state-owned enterprises to reduce their workforce by 33 percent as part of efforts to streamline operations and enhance efficiency. Commenting on the decision, Minister Moosa Zameer stated that the downsizing process will be conducted in accordance with the Employment Act and based on the specific operational requirements of each company. The Minister further noted that the government will take the individual circumstances of each enterprise into account, acknowledging that a blanket reduction of this scale could hinder the operations of certain companies.
Minister of Finance Moosa Zameer. | President's Office | Presidents office
Minister of Finance Moosa Zameer has stated that there are currently 42,000 employees working across state-owned enterprises.
Speaking at a meeting of the crisis committee established by the President in response to the conflict in the Middle East, Zameer stated that discussions are ongoing with State-Owned Enterprises (SOEs). He noted that the hiring and termination of staff is a continuous process within these enterprises, which collectively employ approximately 42,000 people. He further clarified that while rightsizing efforts are underway, some companies may not be able to reduce their workforce by 33 percent. Specifically, he highlighted that Island Aviation Services (IAS) would not need to implement such extensive cuts, noting that reducing its staff by 33 percent would render the company unable to maintain its operations.
Zameer stated that some companies would be unable to implement the full 33 percent reduction in staff. He clarified that while the government intends to rightsize based on current operations, this does not mean mass layoffs will occur overnight. He further noted that instructions have been issued to carry out the staff reductions in accordance with the Employment Act. He emphasized that the process will be managed carefully, taking into account the potential difficulties and impact on the individuals involved.
"Our current estimate indicates that there are approximately 42,000 employees across all State-Owned Enterprises (SOEs). While the Privatization and Corporatization Board (PCB) and individual companies are responsible for maintaining specific records, our latest projections suggest the total workforce stands at 42,000."Minister of Finance Moosa Zameer
The Ministry of Finance on Thursday directed the Privatization and Corporatization Board (PCB) to reduce the workforce of state-owned enterprises (SOEs) by 33 percent and to ensure that future recruitment is based strictly on education, skills, and merit.
According to the Ministry, the directive was issued to strengthen the governance of state-owned enterprises and enhance their operational performance.
