Debswana pays P2.3bn on staff exits
Lewanika Timothy | Monday November 2, 2026 06:00
The latest update places the departures close to the company’s target of 1,300 employees, as it pursues broader cost cutting measures to align its operations with weaker market conditions. Officials said another 181 departures would bring the exercise to that target. Debswana Chief People Officer, Matlhogonolo Mogapi, revealed the company had opted for voluntary separation, in order to align with the current status of the diamond market. “We had to downsize because the markets were down,” she said when addressing Botswana Mining Show this week.
“We needed to part ways with 1,300 people, and it had to be via voluntary separation. To date we have parted ways with 1,119 people.” Furthermore, Mogapi put expenditure on the exercise at P2.3 billion, adding that approximately 25% to 30% went to the national fiscus through taxes under the applicable arrangements. The disclosure brings into focus the employment consequences of the diamond downturn, which has squeezed company earnings and government revenues whilst reinforcing the urgency of developing economic opportunities beyond the industry. In February 2025, Debswana revealed to Mmegi that it had accepted approximately 500 voluntary separation applications following a call for expressions of interest in December 2024. Interest exceeded the number of requests approved, with the company retaining some applicants because their skills remained essential.
“In consultation with our Workers’ Union, we agreed to create opportunities for employees who wanted to explore other ventures, to express interest in separating from the company, and this call for expressions of interest attracted a significant interest, with the company, however only acceding to approximately 500 requests,' the company said. “Some of the requests were declined due to criticality of roles and business requirements,” Debswana had revealed then in a written response. The latest figure is more than double the approximately 500 departures disclosed then, showing the extent to which the workforce restructuring has progressed as difficult trading conditions persist. At the time of the February report, Mmegi was informed that another round of voluntary separations was being considered. Debswana did not directly confirm this, saying it continued to assess the operating environment and explore opportunities for the company and its employees.
The company’s difficulties followed a global diamond-demand slump dating back to the third quarter of 2023. As the weakness persisted, the mining company introduced measures to lower costs and improve efficiency across its operations. Debswana had previously said voluntary separation was intended to “explore opportunities to realign our staffing levels with current business needs given the ever-evolving business operating environment”. The workforce exercise accompanied efforts to extend lifespan, improve fuel efficiency and increase productivity. Debswana was also pursuing automation, digitalisation, supplier contract renegotiations and energy-efficiency initiatives to contain operating expenditure. “In addition to previously implemented cost-optimisation strategies such as extending the lifespan, improving fuel efficiency, and increasing productivity, Debswana has undertaken several initiatives to enhance operational efficiency,” Debswana had revealed.
Insiders interviewed during Mmegi’s earlier reporting argued that staffing concerns predated the downturn. They said consultants had previously raised questions about whether the company employed more people than its operations required, with weaker markets making adjustments more urgent. “Consultants have over the years through their studies shown that Debswana is operating with more people than it needs. This has been true regardless whether there has been a downturn or not. The downturn has just made the situation more urgent,” an insider said at the time.
Other sources linked employees’ willingness to leave to uncertainty about the company’s future and concern that waiting could expose them to less favourable terms should compulsory cuts eventually follow. Debswana had not announced such cuts in its responses. The P2.3 billion expenditure now gives a clearer indication of the financial scale of the voluntary programme, although the latest disclosure does not establish the period over which the packages were paid or the recurring savings expected from the departures.