Econet Wireless Zimbabwe has announced that it has issued retrenchment notices to about 100 employees, with immediate effect.
In a statement, Chief Executive Officer Mr. Douglas Mboweni said the fall in revenue created by a POTRAZ regulatory directive, which the company is contesting in court, had resulted in a decline in revenue.
Econet undertook a comprehensive review of its staffing levels resulting in these retrenchments, bringing the total number of people whose employment contracts have been terminated to over 130 employees, since the beginning of the year.
Mr. Mboweni advised that the staff affected had been informed of the decision. In line with the cost rationalisation effort, Steward Bank terminated contracts of 39 employees earlier in the year.
Mr Mboweni said the company had complied fully with all the labour laws with respect to retrenchment. He said the company will award shares to staff who accept the retrenchment offer.
“The shares are not part of the retrenchment package but are an incentive for speedy closure of the retrenchment process that will reward long service with the company. This award will only be available to those employees who have been identified for retrenchment, who voluntarily agree to abide by the process and time-frames outlined in the retrenchment process. The award of shares will be done after the retrenchment process is completed.” said Mboweni
