Zimbabwe’s largest financial services conglomerate, CBZ Holdings Limited, has retrenched 347 workers as part of a sweeping restructuring exercise aimed at enhancing operational efficiency and ensuring long-term sustainability. This latest round of layoffs comes just three months after the company dismissed 13 senior executives, signalling a troubling trend in the country’s struggling economy.
The retrenchments, which were concluded on January 31, 2025, are part of a broader restructuring initiative that began in October 2024. In a statement released on Saturday, the bank explained that the move was necessary to align its operations with the evolving business landscape.
“We would like to confirm that we have now concluded the restructuring exercise as of 31 January 2025. As part of the process, a total of 347 staff roles were impacted in the second phase of the restructuring out of a total staff complement of 1,448,” the statement read.
CBZ Holdings Group Chief Executive Officer Lawrence Nyazema expressed gratitude to the affected employees for their contributions and pledged support during their transition. “We are deeply grateful for the contributions of all affected employees, and we are committed to supporting them during this transition and providing the necessary resources to assist in their next steps,” Nyazema said.
A Wave of Layoffs Amid Economic Challenges
The retrenchments at CBZ Holdings are part of a larger trend in Zimbabwe’s corporate sector, where companies are grappling with soaring economic costs and the need to streamline operations. The financial services sector, in particular, has been heavily impacted by automation, which has reduced the need for human labour.
Last year, CBZ Holdings announced plans to lay off staff, beginning with 13 senior executives. In a statement dated September 21, 2024, the company revealed that the restructuring exercise would affect all entities under its integrated business empire.
“CBZ Holdings is embarking on a restructuring exercise across its group of companies, aimed at aligning the Group’s strategic thrust with the evolving business environment,” the statement read. “This move is part of our broader efforts to strengthen our market position and ensure long-term sustainability in our dynamic market.”
The first phase of the restructuring targeted senior executives, with 13 top managers placed on garden leave starting October 1, 2024. Their contracts were mutually terminated by December 31, 2024.
Streamlining Operations for Efficiency
CBZ Holdings, which boasts the largest portfolio of assets and deposits in Zimbabwe, has not been immune to the country’s harsh economic climate. Recurrent currency instability and government-imposed market controls have created a challenging environment for businesses, forcing many to adopt cost-cutting measures.
The company emphasised that the restructuring was necessary to improve efficiency and better serve its clients. “By streamlining our operations, managing costs effectively, and sharpening our strategic focus, we are better positioned to serve our clients and stakeholders more efficiently. We are committed to continually improving our business processes and adapting to the changing needs of the market to ensure continued growth and success,” the statement added.
A Bleak Outlook for Employees
The retrenchments at CBZ Holdings are a stark reminder of the economic challenges facing Zimbabwe. Thousands of employees across various sectors, including major supermarket chains and other companies, have lost their jobs as the economic crisis deepens.
The financial services sector, in particular, has been hit hard by declining public confidence in the banking system and inconsistent monetary policies. This has led to a reduction in bankers’ income and an increased reliance on non-interest income for banks.
For the 347 workers retrenched by CBZ Holdings, the future is uncertain. While the company has promised to provide support during the transition, many fear that this is just the beginning of a larger wave of layoffs as businesses continue to struggle in the face of economic instability.
A Call for Economic Reform
The retrenchments at CBZ Holdings highlight the urgent need for economic reform in Zimbabwe. Businesses are calling for consistent and predictable policies that will enable them to operate effectively and create jobs.
As the country’s largest financial services company, CBZ Holdings plays a critical role in the economy. Its struggles are a reflection of the broader challenges facing Zimbabwe, where businesses and workers alike are bearing the brunt of economic mismanagement.
