Mass layoffs at CBZ

LIVINGSTONE MARUFU

CBZ Holdings, the country’s largest  financial services group by assets, is laying off an undisclosed number of its workers across the board as it grapples with soaring costs and the effects of Covid-19 pandemic, Business Times can report.

It also comes after automation has taken over in the financial services sector, a situation which has given  banks a leeway  to work with a learner workforce.

On top of that, working from home has shown some managers that they need fewer employees to do the same amount of work.

In the event that the required numbers in voluntary job cut are not reached, CBZ  will undertake  a compulsory retrenchment exercise  in June 2021.

The exercise is expected to take a big toll.

Business Times can report that CBZ chief executive officer, Blessing Mudavanhu, in a letter to employees issued on Friday last week, offered employees a voluntary severance package.

However, it was not clear how many workers will be affected.

“As we venture into  a new  and changing business model and new ways of work, we will inevitably need to review our current structures and operations,” Mudavanhu said.

He added: “We acknowledge that they are some colleagues amongst us who may not be willing  or able to undertake this journey of change and will be able to take the opportunity to pursue other interests.

“We are therefore pleased to announce the offer of a voluntary severance package for any employees who are willingly, freely and voluntarily wish to consider  pursuing opportunities outside of the organisation.”

Applications forms were made available  from  Monday this week and the exercise will run until May 9, 2021.

Mudavanhu said all offers shall be considered and a responses indicating whether the application was accepted or declined shall be provided not later than May 18, 2021.

The Covid-19 has resulted in many changes in corporate  landscape in the way companies do business.

CBZ boss said this is an area  which CBZ continue to change and with the automation comes the need for new business models and different skill sets.

Workers will get a notice pay for three months, some service pay for six months, positive leave days will be paid.

The bank shall pay medical aid bills for the next six months, funeral policy for six months.

Staff loans will become due and  payable with housing loans being paid a minimum of 50% of the mortgage loan balance will be due and payable from the package upon exit.

“Following the voluntary severance exercise, the organisation shall review any remaining positions which has been impacted by change in the way which we do business,” Mudavanhu said.

If the required numbers are not reached through the voluntary exit, CBZ  will also undertake retrenchment exercise  in June 2021.

Mudavanhu said this will take place in liaison with the affected employees, workers committee and management committee  and will be  fully aligned to the legislative guidelines.

CBZ said the process has caused anxiety among workers but promised to apply transparency and fairness when carrying out the layoff  exercise.

Most local lenders in Zimbabwe have embarked on job cuts.

Stanbic, another big bank in Zimbabwe is in the process of laying of 38 employees this year.

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