Public sectors, like attics, need occasional cleaning out. Employment in the public sector gets bloated because of patronage and poor accountability. Productivity can be raised sharply by reviewing labor requirements. The immediate savings - although not always as large as they would be in Brasil, for example, where public firm pay wages far above industry averages - generally are worthwhile in most developing economies. There is also ample room for privatization. Like fashions, ideological fads change, and one can benefit from the mood of the day to sell off steel mills, airlines, or telephone companies - none of which are considered to occupy the commanding heights of capitalism (p.24).

It is implied in the text above that:

Item 4 - “Reviewing labor requirements” is an euphemism for the lay off of public servants.