The federal government laid off 2,900 daily-wage workers from Utility Stores Corporation (USC) in a single day following its closure. Termination letters were sent to employees, many of whom had served for over a decade. Contract workers are expected to face layoffs in the next phase.
The decision to shut down USC was made in August 2024 as part of cost-cutting measures, including the discontinuation of a Rs 50 billion subsidy. The federal cabinet had formed a committee to oversee the closure process.
In addition to USC, 28 departments across five ministries are being shut down to reduce administrative expenses. The government has also placed USC on the privatization list, with plans to sell it in stages.
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