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Air Zimbabwe lays off half its workforce amid financial woes | Air Zimbabwe lays off half its workforce amid financial woes |
(about 1 hour later) | |
Zimbabwe's state-owned airline has laid off 200 workers, roughly half of its staff, with immediate effect. | Zimbabwe's state-owned airline has laid off 200 workers, roughly half of its staff, with immediate effect. |
The job losses are part of a turnaround strategy to bring struggling Air Zimbabwe back to profitability from a $300m (£230m) debt. | |
Last month the EU banned it from using its airspace, citing safety concerns. | |
There have been major changes at the national airline since President Robert Mugabe's son-in-law took over as chief operating officer last year. | There have been major changes at the national airline since President Robert Mugabe's son-in-law took over as chief operating officer last year. |
'Struggling to keep afloat' | 'Struggling to keep afloat' |
"We were overstaffed by a lot and we are also trying to weed out people without the right qualifications," the airline's chairwoman Chipo Dyanda said on Wednesday. | |
"The retrenchment is meant to give space to the airline so that we can redeploy the money saved back into the company." | "The retrenchment is meant to give space to the airline so that we can redeploy the money saved back into the company." |
An Air Zimbabwe spokesperson told state media that management has also been trimmed from 28 to just 12 and the finance department from 36 to 17. | An Air Zimbabwe spokesperson told state media that management has also been trimmed from 28 to just 12 and the finance department from 36 to 17. |
The airline has struggled to keep afloat over the last decade and plans to carry out a restructuring exercise that will include retraining for all staff, including top management. | |
Unconfirmed reports say that a name change is also in the pipeline - a move many believe is an attempt to ring-fence the airline's debt and reduce the threat of creditors seizing the planes. | Unconfirmed reports say that a name change is also in the pipeline - a move many believe is an attempt to ring-fence the airline's debt and reduce the threat of creditors seizing the planes. |
The BBC's Shingai Nyoka in Harare says that President Mugabe is a frequent flier on the airline, often leasing out the largest plane for state visits and private medical visits to the Far East. | The BBC's Shingai Nyoka in Harare says that President Mugabe is a frequent flier on the airline, often leasing out the largest plane for state visits and private medical visits to the Far East. |
In May, President Mugabe said that Zimbabwe was the most-highly developed country in Africa after South Africa. He denied that the country was in a fragile state. | |
Zimbabwe has been struggling to pay its civil servants recently and is ranked 24th on the UNDP's Human Development Index for Africa. | Zimbabwe has been struggling to pay its civil servants recently and is ranked 24th on the UNDP's Human Development Index for Africa. |
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