The Privatization and Corporatization Board (PCB) has ordered state-owned enterprises to reduce their staff count by 33 percent within the next three months.

PCB previously issued a circular in April directing state-owned enterprises to downsize their workforce to 33 percent. Referencing that circular, the new circular issued by PCB last Sunday established a deadline to achieve this target.

Accordingly, companies have been ordered to downsize their staff count to 33 percent within a three-month period starting from the 13th of this month.

Some companies have already taken various measures to reduce their staff count. In this regard, HDC and Fenaka have offered employees who wish to resign voluntarily the opportunity to do so with three months' salary.

According to PCB, companies are downsizing 33 percent of their staff to ensure that the workforce of these enterprises is maintained at a level proportionate to the company.

PCB has decided to closely monitor how companies downsize their staff. As such, the circular instructs companies to send the updates regarding the changes to the company size to PCB every Sunday.

President Dr. Mohamed Muizzu announced that state-owned enterprises would downsize staff following the Local Council Elections. He stated that the results of the election showed that the public does not approve of this matter, and therefore, actions would be taken regarding it.

To strengthen the framework and management of state-owned enterprises, the Minister of Finance at the time, Moosa Zameer, had also instructed PCB on April 17 to reduce the staff count of these companies by 33 percent.

"These measures are additions to the instructions previously issued by PCB to reduce company expenses, utilize robust guidelines in spending money, and improve financial management," a document shared with the media by the Finance Ministry in April stated.

"Previous measures include controlling salaries and allowances, halting promotions and the recruitment of new employees except in absolutely essential circumstances, limiting overtime work, canceling non-essential events, and reducing travel and other discretionary expenses."