The federal government has started a major restructuring of the Utility Stores Corporation, planning to close around 1,000 outlets that are not performing well. So far, 446 stores have already been shut down, and more closures are expected as the government reviews the performance of other outlets.
Most of the targeted stores are in rural areas, where they have depended on government subsidies but struggled with low revenue and financial losses. The restructuring aims to address these issues and make the corporation more efficient.
The future of the corporation’s 3,800 employees is still being decided. Although no immediate layoffs are planned, some workers may be reassigned or face job losses as part of the changes.
To improve operations, the government is considering merging unprofitable outlets with successful ones. This move is expected to help the Utility Stores Corporation cut costs and run more efficiently in the long term.
