The Privatization and Corporatization Board (PCB) has instructed all state-owned enterprises to reduce their workforce by 33 percent within the next three months as part of a broader effort to improve efficiency and reduce operating costs.

The directive, which took effect on July 13, was issued through a circular signed by PCB President Mohamed Nizar.

Under the order, all state-owned companies must provide weekly updates on employee numbers every Sunday to allow the board to monitor progress.

According to the PCB, the workforce reduction follows instructions from the Ministry of Finance and Public Enterprises, which aims to strengthen corporate governance by aligning staffing levels with each organization's operational requirements.

The ministry has also introduced measures to tighten recruitment procedures, with greater emphasis on hiring candidates based on qualifications, skills, and operational needs.

Several state-owned enterprises have already begun implementing the directive.

Housing Development Corporation (HDC) and Fenaka Corporation have introduced voluntary separation programs, offering eligible employees compensation equivalent to three months' salary.

The PCB said the initiative is intended to ensure that state-owned enterprises maintain workforce levels that match their operational demands while supporting their long-term financial sustainability.

In addition to reducing staffing, the board has directed companies to implement a range of cost-control measures.

These include limiting new recruitment to essential positions, suspending promotions, restricting overtime, reducing non-essential official travel, and cutting discretionary spending.

The PCB said implementation progress will continue to be reported to the Ministry of Finance and Public Enterprises to support oversight, transparency, and accountability throughout the restructuring process.