ZB Financial Holdings retrenches

Ruth Chipayi Harare Bureau
ZB Financial Holdings is retrenching at least 300 employees by the end of this month in a restructuring exercise aimed at aligning its staffing levels with the current business outturn.
ZB Financial Holdings group chief executive Ron Mutandagayi said ZB Asset Management and ZB Securities had been closed as the first step of the restructuring process.

“The restructuring process began when we made the decision to close the first two units – ZB Asset Management and ZB Securities. It’ll be concluded at such a time that we’ve attained our targeted level of staff, however we don’t envisage the matter to go beyond October 31, 2014,” said Mutandagayi.

Currently the group’s staffing levels are at 1,200 and Mutandagayi said that the organisation’s capacity and its future business needs can be sustained by about 900 staff members and this will result in the laying off of 300 members of staff.

Mutandagayi also said the new structure has also impacted head office and shared services hence it resulted in the closure of its two units, ZB Asset Management and ZB Securities as part of this process.

“We’ve taken a deliberate strategy to leverage on technology to achieve improved efficiencies through technology deployment and this will result in us reducing some staffing levels.”

The Zimbabwe Banking and Allied Workers’ Union (Zibawu) general secretary Peter Gift Mutasa said ZB Bank has already started retrenching workers since last month.

“We heard that they started retrenching about a month ago on voluntary disengagement offer basis that was extended to staff and about 200 have already volunteered to go.

“However we’ve not been formalised on the compulsory disengagement scheme which will leave 100 people jobless and in the event that we’re formally told through the proper channels we’re going to challenge their need to do so,” he said.

Mutandagayi said ZB will focus on cost optimisation through right sizing which will affect short term results, but was expected to drive growth in the future.

Retrenchments in the financial services sector increased when the country dollarised with the Reserve Bank of Zimbabwe having to shed off 1,300 workers who were employed under the quasi-fiscal activities.

Most companies in the country are struggling to produce as liquidity problems continue to bite.