Editor
The Zimbabwe Congress of Trade Unions (ZCTU), acting secretary general, Runesu Dzimiri says there is need to implement strategic mechanisms to stabilize the economy and mitigate against further job loses, following a research that has revealed that over thousands of workers have lost their jobs in Zimbabwe since 2024.
Dzimiri said more jobs are likely to be lost in 2025 as a result of economic challenges.
“Between 2024 and early 2025, Zimbabwe experienced significant job losses across various sectors, driven by economic challenges such as currency instability, inflation, and automation,”said Dzimiri.
“The banking sector was one of the hardest hit, with nearly 500 employees losing their jobs due to cost-cutting measures and technological advancements. CBZ Bank accounted for the majority of these layoffs with 347 job cuts, followed by First Capital Bank (52), ZB Bank (33), and Steward Bank (21) These retrenchments were driven by automation and strategic restructuring to enhance operational efficiency in a volatile economic environment.
That’s why experts like Shepherd Ngandu from the Zimbabwe Banks and Allied Workers Union (ZIBAWU) and Japhet Moyo from the Zimbabwe Congress of Trade Unions (ZCTU) called for policy interventions, including retraining programs, to mitigate these job losses,” said Dzimiri.
Dzimiri said the manufacturing sector also witnessed challenges which will continue.
“The manufacturing sector also faced substantial challenges. Bata Shoe Company announced plans to retrench about 10% of its workforce due to the deteriorating operating environment, exacerbated by cheap imports and rising costs.
Similarly, the garment industry suffered major setbacks, with multiple factory closures contributing to Zimbabwe’s high unemployment rate, estimated at 20.5%, while informal employment remains dominant at approximately 80%.
” Edgars Stores Limited also struggled against smuggled cheap imports, leading to job insecurity in the retail sector,” he said.
Dzimiri said the mining sector was also hit by challenges mainly due to depressed mineral prices at the world market, leading retrenchment.
“The mining industry was not spared from retrenchments. In March 2024, Zimplats, Zimbabwe’s leading platinum producer, initiated a voluntary retrenchment program in response to weak platinum group metal prices. The company anticipated that these depressed prices would persist for 12 to 18 months, necessitating cost-cutting measures to maintain financial stability. Employees opting for voluntary redundancy were offered packages, including a minimum of three months’ pay.”
Dzimiri added:
” Additionally, Tongaat Hulett Zimbabwe, a major sugar producer, announced in January 2025 that it would lay off 1,000 workers by August of the same year. Rising operational costs and significant currency losses forced the company to implement these workforce reductions in three phases, affecting employees at its Hippo Valley and Triangle mills. Tongaat Hulett Zimbabwe reported a 55% decline in profit margins since 2022, while labour costs had surged by 113%.
“These figures highlight the extensive impact of Zimbabwe’s economic instability on employment across different sectors. Analysts suggest that addressing these challenges requires collaborative efforts between government agencies like the Reserve Bank of Zimbabwe and private sector entities through forums such as the Tripartite Negotiating Forum.
“Policies focused on upskilling workers, rather than relying solely on layoffs, could help balance efficiency with social responsibility while fostering consumer trust in industries facing digital transformation and economic pressures,”said Dzimiri.
Dzimiri said just two months into 2025, the country has experienced a number of job loses due to economic factors and challenges.
“As of February 2025, Zimbabwe has faced significant job losses across various sectors due to ongoing economic challenges, including high inflation, currency instability, and structural inefficiencies.
” The banking, manufacturing, and mining sectors have been particularly impacted, with approximately 1,000 formal jobs lost in the first two months of the year alone, as companies continue to downsize or restructure in response to volatile economic conditions. “These losses are compounded by the broader unemployment crisis in Zimbabwe, where formal job opportunities remain scarce, and informal employment dominates the labor market.
“In the banking sector, retrenchments have continued from 2024 into 2025 as financial institutions adapt to technological advancements and cost-cutting measures. CBZ Bank, which laid off 347 employees in 2024, announced an additional 50 job cuts in January 2025, citing the need to streamline operations in light of increased automation.
“Similarly, other banks, such as First Capital Bank and ZB Bank, are expected to announce further layoffs as they continue to digitize services and reduce reliance on traditional banking roles. These developments reflect a broader trend in the financial sector, where automation and digital transformation are reshaping workforce needs.
Dzimiri added:
“The manufacturing sector remains a critical area of concern, with companies such as Bata Shoe Company and several garment factories implementing layoffs to cope with rising production costs and competition from cheap imports. In early 2025, Bata confirmed plans to retrench an additional 5% of its workforce, following a 10% reduction in 2024.
” The garment industry has also been severely impacted, with several factories in Harare and Bulawayo shutting down operations entirely, leading to hundreds of additional job losses. These closures highlight the challenges faced by Zimbabwean manufacturers, who struggle to compete with imported goods while navigating an unstable economic environment.
“The mining sector, a key pillar of Zimbabwe’s economy, has also seen significant job cuts in early 2025. Rising operational costs, inconsistent power supply, and fluctuating global commodity prices have forced companies to scale back production and lay off workers. For example, a major platinum mining company announced plans to cut nearly 200 jobs in January 2025, citing unsustainable production costs and the need to restructure operations.
This has particularly affected rural communities, where mining often serves as the primary source of formal employment.”
Dzimiri said there was an urgent need for collaboration between government, private sector, public sector and the labour union to tackle the economic challenges which has resulted in further job loses.
“Zimbabwe’s job losses in 2025 highlight the ongoing challenges of an economy struggling under the weight of inflation, external competition, and structural inefficiencies. The banking sector continues to shed jobs as institutions prioritize automation and digital transformation, while the manufacturing and mining sectors grapple with operational challenges and external pressures. The broader implications of these losses include rising unemployment, increased reliance on informal employment, and a growing need for targeted interventions to stabilize the economy.
“Addressing these challenges will require collaboration between the government, private sector, and labor unions to implement policies that support job retention, retraining programs, and economic reforms,”said Dzimiri.
“Additional sectors such as tourism, agriculture, and retail have also been significantly impacted. The tourism sector, which had shown signs of recovery after the COVID-19 pandemic, has been hindered by declining international arrivals and reduced domestic spending. Hotels and lodges, particularly in areas like Victoria Falls, have reported layoffs as occupancy rates drop.
” Meanwhile, the agricultural sector has faced challenges from erratic weather patterns, high input costs, and limited access to financing, impacting smallholder farmers and seasonal workers.
The retail sector has also been affected by inflation and reduced consumer spending, leading to closures and job losses.”