A total of 97 employees at Fenaka Corporation have applied to leave the company under a voluntary redundancy scheme aimed at reducing costs and stabilizing its finances, Managing Director Mohamed Afeef Hassan said on Wednesday.

In an internal memo issued on 1 June, Fenaka offered employees the option to resign voluntarily in exchange for a severance package equivalent to four months’ salary. The deadline for applications was 14 June.

Afeef told Mihaaru News that 97 employees had opted to leave under the scheme and are being processed for redundancy.

He said the company’s broader “rightsizing” exercise was also being supported by some island-level managements, who had called for staff reductions in certain branches.

“There are employees who are signed into work without any work to do, and there is dissatisfaction among employees who are actually doing the work,” he said, adding that the restructuring was also intended to address inefficiencies in staffing.

According to Afeef, the redundancy process for applicants will be completed in July, with further reductions expected to continue through the year. 

He said Fenaka has allocated funds for the restructuring within its current budget but expects staffing costs to decrease by year-end, allowing more room for operational spending such as fuel, spare parts and generator maintenance.

Fenaka currently employs more than 8,000 staff. The company has previously said its large workforce has created administrative and operational pressures, affecting its ability to allocate resources efficiently.