Fenaka Corporation to Cut Staff to Curb Rising Operational Costs

Fenaka Corporation Limited is implementing a staff reduction plan to address escalating operational costs and service delivery challenges across the Maldives' northern and southern atolls. Managing Director Mohamed Afeef Hussain announced the move during an appearance on the PSM News programme 'Raajje Miadhu,' stating that 'right-sizing' is essential to fortify the utility provider's operations. With a current workforce of approximately 8,000 employees, Fenaka's monthly salary expenditure has reached an estimated USD 5.84 million. According to Hussain, this financial burden is disproportionate to the company's revenue, significantly exceeding the budgets allocated for both employee obligations and the actual provision of services. To correct these imbalances, the board of directors has approved a formal redundancy policy following a comprehensive evaluation of regional branches and internal departments. As part of this framework, employees who choose to leave the corporation voluntarily will be eligible for a lump-sum payment equivalent to four months of their salary. As part of the restructuring, Fenaka has categorized its atoll branches into four operational tiers based on customer volume, ranging from large city-level operations to small branches serving fewer than 300 customers. This new hierarchy is being used to determine the necessary staffing levels for each location based on actual capacity. Hussain emphasized that the company will prioritize the most experienced and essential personnel to fill positions within the new organizational structure. He noted that staff members who cannot be integrated into these roles will face redundancy. Addressing potential criticisms, the Managing Director asserted that the initiative is a calculated effort to ensure the sustainable long-term management of the utility provider rather than a move driven by political motives.