ZB moves to lay off staff

Zim Now Writer

A 100% rise in staff costs reported last year has forced ZB Financial Holdings Limited to move to shed some of its staff through a voluntary disengagement scheme which the financial services group completed recently.

ZBFHL has offered its employees a voluntary retrenchment and said employees who wished to pursue other interests were free to do so through the scheme as the group goes through changes.

The scheme was introduced between May 11 and 19, and was open to all categories of permanent staff, including executives, senior management, managers, and non-managers.

“The changing business environment, which was precipitated initially by the Covid-19 pandemic and the global economic downturn have impacted on the way we provide services and value to our customers. In line with this, we have revised our business model and supporting structures to effectively implement our strategy. New ways of delivering value through digital channels and automation will continue to require new skillsets from our people,” the group said.

“As we go through these changes, we are aware some colleagues may be uncomfortable with the changes and may wish to pursue other interests. It is on this basis that a decision has been made to offer a voluntary disengagement package to willing members of staff within the group.”

The group maintained that participation in the exercise was purely voluntary.

ZBFHL’s financial results for its fiscal year ended December 31, 2022 show that staff expenses took up 51.51% of total operating expenses.

During the period, ZBFH recorded an increase of 116% to $20.71 billion in staff costs from a 2021 comparative of $9.7 billion.

Further, the group’s employees were early this year forced to re-apply for new positions in the company following the takeover of the diversified financial institution by an investment firm linked to businessman, Kudakwashe Tagwirei.

ZBFHL operates ZB Bank, ZB Building Society, ZB Life Assurance, ZB Reinsurance, ZB Capital and ZB Transfer Secretaries, among other strategic business units.