In a sweeping move, the federal government has terminated 2,900 daily-wage workers from the Utility Stores Corporation (USC) in a single day following its closure. Many affected employees had served the organization for over a decade. The next phase is expected to see layoffs of contract workers.

This decision follows an August 2024 mandate to shut down USC as part of cost-cutting measures, including ending a Rs 50 billion subsidy. A federal cabinet committee was formed to oversee the closure process.

The closure of USC is part of a broader plan to reduce administrative expenses, which includes shutting down 28 departments across five ministries. Additionally, the government has placed USC on the privatization list, with plans to sell it in stages.
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