HomeBusinessZB moves to compulsory retrenchments

ZB moves to compulsory retrenchments

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ZB Financial Holdings has embarked on a compulsory retrenchment exercise amid reports that workers are reluctant to part with the institution voluntarily.

MTHANDAZO NYONI
OWN CORRESPONDENT

The financial institution early this year announced plans to retrench 300 workers through a voluntary scheme.

ZB group chief executive Ron Mutandagayi yesterday said the voluntary scheme would end on October 31.

He said a subsequent compulsory retrenchment exercise would be completed by end of November.

“This process aims to ensure that business outturn and profitability, together with the current staff resources are aligning, as a result of saving on unnecessary costs which do not justify the current depressed business levels,” he said in a statement.

“Our cost reduction exercises are not limited to staff rationalisation alone. We are working on many initiatives that include accommodation rationalisation, use of technology to increase efficiencies and going paperless in most of our operations. With all these interventions, we aim to achieve a cost-to-income ratio of 50% by 2016.”

Mutandagayi said their focus for the future was to create value for their stakeholders and to grow the business.

“Technology will continue to play a key role in our future strategy as we seek to be a technologically innovative organisation,” he said.

“We will continue to evaluate our business to ensure we remain relevant to our customers and to find new opportunities for future growth.”

ZB’s income for the period under review was $20,5 million down from $22 million in the same period last year, reflecting an 8% decline.

Profit after tax fell to $529 057 from $1, 3 million recorded in June last year, a plunge of 139%.

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