MUSCAT: The decision by a well-known telecom firm to terminate the employment of 125 staff has reignited a broader economic debate over corporate restructuring, foreign investment responsibility, and the evolving concept of job security in Oman’s private sector.
The Ministry of Labour said the move followed voluntary resignation offers equivalent to 24 months of full pay, accepted by 114 employees, while 11 declined. The ministry confirmed it coordinated closely with relevant regulators and continues to monitor the case to ensure compliance with labour regulations.
Yet economists argue the issue should not be viewed purely through a legal or procedural lens.
Speaking to the Observer, a market economist said the decision raises structural questions about how large, listed companies manage change — and the signals such decisions send to the wider economy.
“As a publicly listed company, with a market value running into hundreds of millions of rials, it is expected to set benchmarks for responsible restructuring, not default to workforce reductions as the fastest solution,” the expert said.
He added that while corporate restructuring is often necessary, modern economic practice emphasises redeployment, retraining, and productivity-driven transformation — particularly in sectors with relatively stable cash flows such as telecommunications.
The economist warned that decisions taken by large firms reverberate beyond their balance sheets. “If a company of this scale opts for contract termination, what message does that send to small and medium-sized enterprises that are continuously urged to absorb Omani talent and shoulder localisation costs?” he asked.
At the same time, the economist noted that the episode underscores a hard truth for employees in the private sector: job security can no longer be assumed based on a company’s size or reputation alone.
“Private-sector employment today is fundamentally competitive,” he said. “Stability is increasingly linked to skills, adaptability and continuous professional development, rather than tenure or employer prestige.”
He concluded that sustainable restructuring requires a delicate balance — one that protects national human capital while allowing companies to remain efficient and competitive. “The success of any restructuring should not be measured solely by cost reduction, but by its ability to retain talent, maintain trust and support broader economic resilience,” he said.
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