By Business Reporter- The country’s economy is on the verge of collapse, with major retail shops and banks closing operations.

Several prominent retail chains, including TM Pick n Pay, OK Zimbabwe, Spar, and N Richards, have either scaled down operations or shut down branches due to declining revenues and rising operational expenses. 

The retail sector, which once employed thousands of Zimbabweans, has been one of the hardest hit by the economic downturn. 

The closure of multiple retail outlets has resulted in hundreds of job losses, compounding the country’s unemployment crisis.

Zimbabwe’s economic woes are largely attributed to chronic inflation, which has eroded salaries and disposable incomes. 

The ZiG continues to lose value against major foreign currencies, making it difficult for businesses to plan for the future.

One of Zimbabwe’s leading financial institutions, CBZ Holdings, has announced the retrenchment of 347 employees as part of its ongoing restructuring exercise. 

The layoffs, which were finalized on January 31, 2025, mark the second phase of the bank’s strategic realignment to adapt to Zimbabwe’s turbulent economic landscape. 

In a statement issued on February 1, 2025, CBZ Holdings said the restructuring was aimed at enhancing operational efficiency, strengthening its market position, and ensuring long-term sustainability.

The bank had a staff complement of 1,448 before the so-called restructuring.

CBZ’s decision to downsize comes against the backdrop of a struggling economy characterized by hyperinflation, liquidity shortages, and declining consumer spending.

Over the past year, the country has witnessed a wave of business closures, particularly in the retail sector, as companies struggle to remain viable amid soaring costs and dwindling demand.

The Reserve Bank of Zimbabwe (RBZ) has attempted on several occasions to implement policy measures, including introducing a gold-backed digital currency and increasing interest rates, to stabilize the ailing financial system. 

However, these interventions have failed to curb inflationary pressures.

CBZ Holdings is not the only financial institution facing difficulties. 

In recent months, other banks and financial service providers have also been forced to restructure their operations due to reduced lending activity and shrinking profit margins.