Government Rejects Opposition Claims of 14,000 State-Owned Enterprise Job Cuts

The Maldives government has dismissed allegations from opposition figures that state-owned enterprises (SOEs) are planning to lay off 14,733 workers, describing the claims as unfounded rumors designed to incite public unrest. Chief Government Spokesperson Mohamed Hussain Shareef addressed the issue during a press conference this week, labeling the specific figures cited by the opposition—including former Maldivian Democratic Party (MDP) chairman Fayyaz Ismail—as "imaginary." Shareef accused the MDP of attempting to stir emotion among the public rather than engaging in a factual debate regarding the administration's fiscal and management policies. While denying the mass layoffs, the Spokesperson confirmed that the Privatization and Corporatization Board (PCB) has issued a directive to reduce the workforce within certain state-owned companies by 33 percent. This measure, which took effect on July 13, requires the adjustments to be completed within three months. Hussain Shareef emphasized that this directive is not an attempt to engineer indiscriminate job losses, but rather a strategic move to streamline operations and strengthen human-resource practices. He stated that the administration's primary focus is to improve the management of SOEs by preserving a staff level that ensures service quality while refining recruitment based on merit, education, and specific skills. Warning against the spread of misinformation, the Spokesperson urged citizens to rely on verified information from official government channels. He noted that the PCB’s directive, issued under the Ministry of Finance and Public Enterprises, remains the only official guideline governing staffing adjustments within state-owned firms. The dispute highlights growing tensions between the administration and the opposition over the government's approach to state-sector reform and the potential impact on public employment.