Fenaka Corporation has launched a voluntary separation programme offering employees a payout equivalent to four months’ salary as part of ongoing efforts to streamline operations and reduce its workforce.
The initiative was announced through an internal memorandum circulated to staff, which later became public. The memo outlines an opportunity for employees who wish to leave the company voluntarily to resign in exchange for a financial package equal to four months of their current salary.
According to the document, applications for the programme opened today and will remain available until 3:00 p.m. on June 14. Employees interested in participating have been instructed to submit written requests to the company’s Human Resources Department.
The memorandum was signed by Fenaka’s Chief Corporate Officer, Hussain Usaid.
In addition to the voluntary resignation scheme, the company has also invited eligible employees to apply under its Early Retirement Programme. The memo cites provisions contained in Fenaka’s Employee Regulation 2022 and instructs staff seeking early retirement to submit formal applications through the Human Resources Department.
The latest move comes as Fenaka continues efforts to “rightsize” its operations, a process aimed at aligning the company’s workforce and expenditure with its operational and financial requirements.
Fenaka, one of the country’s largest state-owned enterprises, provides electricity, water and sewerage services across numerous islands in the Maldives. In recent years, the company has faced growing scrutiny over its financial performance, staffing levels and management practices.
Several audit reports have previously raised concerns regarding the corporation’s workforce structure. Among the issues highlighted were claims of overstaffing relative to the company’s revenue and operational capacity, as well as allegations that certain promotions had been granted outside established procedures and guidelines.
The government and Fenaka’s management have repeatedly stated that reforms are necessary to improve efficiency, strengthen financial sustainability and enhance service delivery across the islands where the company operates.
Earlier this year, Fenaka Managing Director Mohamed Afeef Hussain said efforts were underway to improve the company’s financial health while accelerating infrastructure projects nationwide. He acknowledged that the corporation had faced significant operational and financial challenges but stressed that reforms were being implemented to place the utility on a stronger footing.
The voluntary separation programme represents one of the most significant workforce-related measures introduced as part of those restructuring efforts.
Fenaka has not yet disclosed how many employees it hopes will participate in the scheme or the potential impact the programme may have on its overall workforce.
