Finance ministry orders 33% workforce reduction in SOEs
The directive requires SOEs to adopt a recruitment framework based on academic qualifications, skills and professional capability.
The Ministry of Finance has instructed the Privatisation and Corporatisation Board (PCB) to reduce the workforce of state-owned enterprises (SOEs) by 33 per cent and to ensure that future recruitment is based on merit.
In a letter addressed to PCB President Mohamed Anas on Friday, the ministry said the measures are part of efforts to improve governance and management within SOEs under existing laws.
The ministry said the workforce reduction is intended to lower costs and strengthen fiscal management. It also outlined steps to improve human resource practices and operational efficiency.
The directive requires SOEs to adopt a recruitment framework based on academic qualifications, skills and professional capability. The PCB has also been instructed to oversee implementation and to establish a system to monitor compliance.
The ministry requested regular updates on progress in carrying out the measures.
The directives form part of a broader approach to managing expenditure and improving the financial position of SOEs. Previous measures include controls on salaries and benefits, limits on promotions and recruitment except in required cases, restrictions on overtime, and reductions in travel and other spending.
