Gov’t Orders 33 Per Cent Workforce Reduction in State-Owned Companies

The Ministry of Finance and Public Enterprises has directed a 33 per cent reduction in employees across government-owned companies as part of wider cost-cutting measures.

The instruction was issued in a directive sent on 17 April 2026 to the Privatisation and Corporatisation Board. According to the ministry, the decision is aimed at reducing operating costs and strengthening control over government spending.

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The ministry stated that the measures are necessary to ensure the long-term sustainability of state-owned enterprises and to align their operations with public finance and operational policies. The directive also outlines additional reforms, including improving operational efficiency, strengthening human resource management and ensuring financial sustainability.

Efforts are also being made to enhance recruitment systems, with an emphasis on implementing stronger merit-based hiring policies to ensure the selection of suitable candidates. State-owned companies have been instructed to implement the measures, with the ministry set to monitor progress and compliance, while requiring regular reporting.

The ministry noted that these steps build on earlier cost-control measures introduced across state-owned enterprises, including limiting recruitment and promotions, regulating salaries and benefits, reducing overtime, cancelling non-essential events, and cutting travel and discretionary expenditure.