KEY POINTS
- CBZ Holdings is restructuring, leading to the exit of 13 senior executives.
- The first phase of terminations will occur by December 2024.
- A second phase of restructuring will involve a detailed review by independent consultants.
A Zimbabwe Stock Exchange-listed firm, CBZ Holdings Limited has embarked on a massive restructuring program that has led to the dismissal of thirteen of its top officials.
This decision is made to enhance the company’s position in the business market due to a shift in operations.
CBZ Group Chief Executive Officer, Lawrence Nyazema said the restructuring was to ensure that the company is aligned with its sustainable practices in the long run. He said, “CBZ is focused on sustaining its competitive advantage and ensuring that the current growth trend in the market is not derailed.”
Garden leave for executives
According to NewsDay, the first category of affected executions will go on garden leave from October 1st, 2024, and the contracts will run until December 31, 2024. Some of the affected executives are well known, such as deputy CEO Investments Jack Smith, group chief risk officer Clemence Chimwanda and chief legal officer Vogt Melanie.
Others who are exiting the company are chief internal audit officer Jonker Bruce, group chief information officer Bansal Ashish and digital business development executive Ruredzo Benlaw. The division leaders in retail banking, mortgage finance, business banking, and bank operations are also included.
Strategy for long-term sustainability
Nyazema stressed that CBZ continues to provide good services to its clients even with restructuring. Its objectives are to ensure the efficient organization of the processes necessary for excellent services without extra investments and to minimize spending on unessential activities. ‘We are adapting to the market’s changing needs to ensure continued growth,’ he said.
The second restructuring stage of the company is planned for the next few months. Independent consultants will conduct a thorough audit of the organization and its goals, with the view to exercising a more efficient flow of operations.
The breakdown of CBZ Holdings is similar to developments witnessed across many other financial institutions in the region, where many are cutting on their lending portfolio and shifting more towards non-funded income because of changes in the business model.
