The cabinet's media centre said in a statement on Friday that it has contacted the Central Agency for Organisation and Administration (CAOA), which "totally" denied these reports, asserting that they are baseless and without merit.
The CAOA added that no decisions have been issued in this regard, the centre said.
The digital transformation strategy aims to hone the skills and digital capabilities of workers in the state’s administrative apparatus, without dismissing any of them, it added.
The statement further said that digital transformation facilitates the fair treatment of employees, because their performance is electronically monitored and their capabilities identified.
Around 6.5 million public sector workers and civil servants are employed by the government.
Egypt intends to digitise all government services countrywide, earmarking million of pounds to push the plan forward.
The country is also pushing ahead with efforts to gradually transfer civil service employees to new headquarters in the New Administrative Capital.