Mexican government closed a state run firm with about 40,000 employees and 25 million customers. This company provides electricity to the capital and rest of the country is closed because it was no longer economically feasible and was suffering huge losses. Officials sent 5,000 police to close the headquarters and various branches of the company.

Federal police seized the offices of Luz y Fuerza Del Centro and according to the government officials; expenditure of the company was increasingly outpacing sales. President Felipe Calderon uttered this firm faced a shaky financial situation. Closure of the firm led to fight of union leaders and government. Cost of the firm between 2003 and 2008 was 433billion pesos while during sale the cost was 236 billion pesos. Mr. Caldron said the service could not continue to fund without increasing electricity rates or taxes. He added saying that it would be unfair particularly when country is going through tough economic times. He also denied union claims that the government was going to privatize to the company. Luz y Fuerza lost 32.5 percent of the energy that is generated or distribute to its customers. Half of the companies’ staff went towards pensions for 20,000 retired workers. Gomez Mont said Financial and operational inefficiencies of the company need to be blamed this year itself the government paid nearly 3 billion dollar to keep the firm floating.