After cutting 8% of their work places last year, the Zimbabwean banks are expected to cut more jobs in 2020 as the economy is weakening and the bank sector shifts away from cash toward digital services.
“The banking industry, just like the rest of the economy, will suffer negative growth this year, which could result in even more job cuts,” the chief executive officer of the Bankers Association of Zimbabwe, Sijabuliso Biyam, advised. “The sector is now driven by technology. If the economy was doing well, those people who have been made redundant could have been redeployed elsewhere, but sadly that is not the case.”
According to the Zimbabwe Banks Allied Workers Union, at least 300 of the 4, 000 bank industry workers lost their jobs in 2019 – 5 times more than in 2018. An economic crisis, an inflation rate of more than 440%, and a cash crisis are forcing banks to provide digital services.
“The year 2019, was not a good year for workers in the banking sector,” the assistant secretary general at the labor union stated. “The workers lost their jobs due to digitalisation and changing work methods.”
Standard Chartered’s local unit, First Capital Bank, CBZ Holdings and BancABC Zimbabwe are among the banks that cut jobs.