Escalating costs have created significant challenges in delivering services to citizens, driving a reduction of employees at Fenaka Corporation Limited, Mohamed Afeef Hussain, the managing director, stated on the PSM News programme 'Raajje Miadhu'. The utility provider extends services across northern and southern atolls, an operational scope presenting notable delivery obstacles that made right-sizing necessary to fortify operations.
Currently, Fenaka employs an estimated 8,000 individuals, resulting in a salary expenditure of approximately USD 5.84 million. This financial outlay is starkly disproportionate to revenue, greatly exceeding budgets for service provision and employee obligations. To address imbalances, evaluations across departments and regional branches prompted the board of directors to approve a formal redundancy policy. Under this framework, employees electing to depart voluntarily will receive a lump-sum payment equivalent to four months of their salary.
Fenaka has systematically divided its atoll branches into four distinct operational tiers based on customer base, ranging from city-level operations to branches serving fewer than 300 customers. Staffing numbers are currently being resolved, with the remaining workforce integrated into the new hierarchy based on capacity, Afeef stated.
"For the positions encompassed within the company's new organisational structure, we will prioritise the selection of our most experienced and essential personnel," Afeef stated. "Once the process of appointing employees to these roles is completed, the remaining staff members will inevitably face redundancy." This initiative represents a calculated effort to ensure sustainable management rather than political gain, he added.