The federal government has laid off 2,900 daily-wage workers from Utility Stores Corporation (USC) in a single day following its closure, with many employees having served for over a decade. Contract workers are expected to be affected in the next phase. The decision to shut down USC was made in August 2024 as part of cost-cutting measures, including ending a Rs 50 billion subsidy. A federal committee was formed to oversee the process. Alongside USC, 28 departments across five ministries are also being closed to reduce administrative expenses, and USC has been placed on the privatization list for phased selling.