LAHORE – Utility Stores Corporation to lay off over 2,500 employees as part of a restructuring plan aimed at cutting operational costs and streamlining the workforce.
The massive layoff affected around 2,600 workers, as the decision aligns with government’s broader effort to rationalize state-run entities and address financial strain on the corporation. As the government cited economic woes and need for operational efficiency, layoffs are expected to face resistance from both employees and labor unions.
USC top officials said cutting jobs is in line with budgetary constraints and to achieve better efficiency. The government’s rightsizing policy is part of an ongoing push to optimize operations. In response to concerns raised in National Assembly by PPP leader Raja Pervaiz Ashraf, Federal Minister for Industries and Production, Rana Tanveer Hussain, reassured the public that utility stores will not be shut down but will undergo restructuring.
He said reforms are needed to enhance efficiency and address inefficiencies caused by political influence in the establishment of many utility stores.
Amidst these developments, rumors about the potential discontinuation of subsidies on essential goods such as sugar, wheat, and cooking oil have surfaced. Additionally, in December 2024, the government had considered closing 1,000 loss-making USC outlets, but ultimately focused on restructuring the corporation for financial sustainability.
Big drop in prices of Ghee, Cooking Oil, and over 800 items at Utility Stores
