CBZ Holdings Limited has embarked on a restructuring exercise which has claimed the heads of 13 senior executives as the Zimbabwe Stock Exchange-listed entity seeks to "strengthen its market position".
The exercise, which is being carried out across the group, will see the first tranche of the affected executives going on garden leave on October 1 with contracts being terminated by end of year.
In a statement on Friday last week, CBZ group chief executive officer Lawrence Nyazema said the move was part of the group's broader efforts to strengthen its market position and ensure long-term sustainability in a dynamic market.
"CBZ Holdings is embarking on a restructuring exercise across its group of companies, aimed at aligning the group's strategic thrust with the evolving business environment. The first phase of the process is at the executive level, resulting in the departure of thirteen (13) senior executives. The executives will go on garden leave starting October 1 2024, with mutual termination of their contracts expected by December 31, 2024," he said
The affected executives are deputy CEO Investments Jack Smith, group chief risk officer Clemence Chimwanda, chief legal officer Vogt Melanie, chief internal audit officer Jonker Bruce, group chief information officer Bansal Ashish and Ruredzo Benlaw, business development executive digital.
Others are Dedrey Mutimutema (divisional director retail banking), Chenai Chiketsani (divisional director, mortgage finance), Paul Chimudzi (divisional director business banking), Edward Mombo (divisional director bank operations), Richard Mangi (investment banking executive), Simbarashe Mhungu (chief operating officer Agro Yield) and Hasmon Bvumburai (general manager CBZ properties).
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Nyazema said the group remained fully committed to fulfilling its obligations and delivering the high-quality service customers have come to expect.
"By streamlining our operations, managing costs effectively and sharpening our strategic focus, we are better positioned to serve our clients and stakeholders more efficiently. We are committed to be continually improving our business processes and adapting to the changing needs of the market to ensure continued growth and success,” he said.
Responding to further inquiries, Nyazema said the second phase of the exercise would follow in the coming months.
“A scientific structural review will firstly be conducted by independent consultants, as we determine the required organisational design. While we cannot preempt the result of the structural review the overall goal is to achieve operational efficiencies and long-term sustainability for the organisation,” he said.
A number of financial institutions have also embarked on restructuring exercises to align to the new economic environment which has seen banks relying more on non-funded income as they cut back on lending.