Johnson Progress

Zimbabwe Consolidated Diamond Company (ZCDC), the country’s largest diamond miner, has announced the retrenchment of 400 employees due to a global downturn in natural diamond prices.

According to a company representative, the job cuts were necessary to prevent the shutdown of operations.

With over 1,800 employees, ZCDC opted to reduce its workforce and maintain operations at a lower rate while awaiting a price recovery.

The global diamond industry has been severely impacted by the rising popularity of lab-grown gems and decreased demand in key markets such as China and the US.

This development is part of a broader crisis affecting the $80 billion diamond industry worldwide. Justice Chinhema, secretary-general of the Zimbabwe Diamond and Allied Minerals Workers Union, described the situation as “scary,” noting widespread retrenchments, particularly in the lithium industry, with over 2,000 workers affected.

The mining sector in Zimbabwe is facing significant challenges, prompting calls for government intervention to support the industry.

Analysts warn that without bold interventions, Zimbabwe risks entering a prolonged period of industrial decline and labour market erosion.