Old Mutual Zimbabwe has offered employees an improved retrenchment package after the first offer, made earlier this year, was met with limited uptake.
Back in April, the insurance giant rolled out a voluntary retrenchment scheme as a way of managing costs in "response to the deteriorating economic environment." Few employees accepted.
The response to the voluntary retrenchment scheme was below expectations, said chief executive officer Jonas Mushosho in a memo to employees on Tuesday. Mushosho said it was imperative that the company reduce its costs of doing business due to relentless economic challenges in Zimbabwe.
Given the high the high inflation rate and the need to control total operating costs, it is important for the business to reduce costs, said Mushosho.
"Management is therefore tabling an offer for a voluntary staff retrenchment scheme on an improved package," the memo said.
He said management would endeavour to conclude the current round of retrenchments timeously in order to preserve the value of the package.
Zimbabwe is officially experiencing hyperinflation, it was announced last week. The country is also facing regular fuel price hikes, data price hikes, and its worst drought in almost four decades.