HARARE – Zimplats has initiated voluntary job cuts among its employees as a cost-cutting measure brought by a period of low metal prices.
Under the programme, employees have been offered a minimum of three months’ pay in redundancy packages, with a deadline for applications set for March 22.
Zimplats, which stands as Zimbabwe’s largest producer of platinum group metals (PGMs), is facing economic pressures due to the anticipated continuation of weak metal prices for the next 12 to 18 months.
According to a staff circular dated March 18, confirmed by the company, Zimplats is offering its employees voluntary redundancy packages as a preemptive measure to avoid compulsory layoffs.
The circular, issued by Zimplats Chief Executive Officer Alex Mhembere, highlights the company’s strategy to mitigate the impact of the current market downturn on its workforce.
“Weak platinum group metal prices are projected to last for the next 12 to 18 months… ” Membere was quoted as saying.
“The producer is beginning a voluntary retrenchment exercise for all employees wishing to be considered, which may mitigate the need for a compulsory retrenchment.
“We have been working with all teams across the board in implementing various cost containment and cash preservation programmes.
“I am confident that as a team, we will successfully navigate through the headwinds.”
The decision by Zimplats to offer voluntary redundancy packages comes in the wake of a significant slump in PGM prices, which has adversely affected the profitability of mining operations in the region.
The four largest PGM producers, including Impala Platinum Holdings Ltd. (Implats), have reported substantial declines in profits due to the sharp decrease in metal prices since the beginning of the previous year.
This downturn has already led to thousands of job cuts in South Africa, which accounts for approximately 70% of the global platinum output.
The current economic environment poses a challenge for PGM miners, prompting companies like Zimplats to explore cost-cutting measures to sustain their operations. – ZimLive
