Since the inauguration of Javier Milei's Government, the number of employees in the national public administration, its decentralized agencies, and state-owned companies has been reduced by approximately 13%. Additionally, for this year, the projections are even more ambitious.
Therefore, Milei's Government is intensifying its efforts to accelerate cuts in all public companies, preparing them for future privatizations and eliminating their dependence on the National Treasury.
In this regard, the libertarian administration revealed that, thanks to the adjustment, this year began with the elimination of the deficit of all state-owned companies, something that hadn't happened for several years.
This work is under the supervision of the Public Companies Transformation Agency (ATEP), led by Diego Chaher, who reports directly to Santiago Caputo, the influential presidential advisor.
Javier Milei, presidente de Argentina.
Chaher's team maintains unalterable objectives, as, being dependent on the Ministry of Economy, it faces pressure from Luis "Toto" Caputo, who since last year has carried out a strong adjustment in the resources allocated to state-owned companies.
According to the latest report from the Ministry of Economy, in 2024, more than $2.77 trillion was required to sustain the operation of all state companies, as they were operating at a deficit.
Upon his arrival at ATEP, Chaher achieved the closure and subsequent reconversion of Télam, the state news agency that had been used for partisan purposes by Kirchnerism.
Additionally, he recently achieved another milestone: the first complete privatization under Milei's administration. This involves IMPSA, the company dedicated to manufacturing energy generation equipment, which was acquired by ARC Energy, a U.S. firm.
Javier Milei, presidente de Argentina.
The Privatizations
The state-owned company Belgrano Cargas is advancing in its privatization process, and Milei's Government aims to achieve this goal before the end of the first quarter of the year.
According to the decree that initiated its transfer to the private sector, the phases include "the vertical disintegration and separation of activities and assets of each business unit, under the modality of public auction for the sale of rolling stock, and through the signing of public works concession contracts for the tracks and their adjacent properties."
Meanwhile, the Mint, which remains under intervention, has already disconnected more than 250 employees, including the former general manager Eduardo de Montmollin.
Recently, it lost its monopoly on patent issuance after supply issues, allowing private companies to participate in the sector. However, this won't be the only change, as further reductions in the entity's exclusive competencies are expected, joined by new state layoffs in the coming months.
Javier Milei y Elon Musk.
Another key point is the nuclear sector, which is preparing to implement adjustments in line with the plan signed by the President. Both the CNEA and companies linked to the area anticipate significant staff cuts.
According to sources who remained in their positions from the previous administration, the National Atomic Energy Commission will reduce its staff by at least 20% throughout 2025, a measure aimed at reducing political positions in the entity.
The companies in the sector are not exempt from restructuring either. Nucleoeléctrica, responsible for operating the Atucha plants and developing the CAREM reactor, reduced its workforce by more than 100 positions last year and is steadily advancing in its privatization process following the approval of the Ley Bases, according to consulted sources.
Meanwhile, Dioxitek closed 2024 with more than 50 disconnections, although it achieved record production levels. The company, which has just 200 employees, plans to make another 30 layoffs in the first quarter of the year to align with Nucleoeléctrica on the path to privatization.
As for Banco Nación, the entity has already completed its conversion to a Corporation, which will allow for its future privatization.
Another company on the radar is the Binational Entity Yacyretá (EBY). Both Paraguay and Brazil have expressed interest in acquiring it for an amount of USD 20 billion, with the intention of having it managed by Itaipú, the other binational company that operates the shared hydroelectric plant between both nations.
Like Banco Nación, last week, Milei's Government ordered the conversion of Yacimiento Carbonífero Río Turbio (YCRT) into a corporation.
This is one of the nine state-owned companies included in the Ley Bases as candidates for privatization or concession. However, they anticipate that its sale won't be immediate, as they will first focus on organizing its financial and operational situation.
Currently, the company has 2,142 employees, records an average of two hours of activity per day, and depends more than 90% on advances from the National Treasury for its maintenance.
