The diamond group, whose activities are the backbone of the country’s economy, has been battling a prolonged global downturn in demand for the precious stones. The slump, dating back to the third quarter of 2023, has placed operational pressures on Debswana, while reducing government’s revenues.
Mmegi is informed that the voluntary separations were initiated as part of efforts to restructure the group and enhance operational efficiencies. Employees were asked to express their interest in the scheme in December.
“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. “Some of the requests were declined due to criticality of roles and business requirements,” Debswana Senior Corporate Affairs Manager – Brand and Stakeholder Relations, Agatha Sejoe, told Mmegi in emailed responses.
While Mmegi is informed that another round of voluntary separations is due to be announced soon, Debswana did not directly comment on the speculation.
“We continue to assess our operating environment and explore opportunities for both the company and employees,” Sejoe said.
Voluntary separation involves a company and its workers, often through their union, agreeing on a separation package which usually involves terms beyond money, such as upskilling opportunities and sometimes priority in future engagements.
Voluntary separation is often seen as a precursor to more drastic actions such as retrenchments, a fear reportedly held by some in Debswana as the group endures the prolonged diamond downturn.
Highly-placed insiders told Mmegi that for years, consultants have raised concerns that Debswana is operating with more employees than it needs.
“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 at the company told Mmegi.
The insiders said the high interest in the voluntary separation was triggered by uncertainty about the company’s future and the possibility of more drastic job cuts being considered.
“The package proved irresistible to some, especially as they looked at the difficulties the company is going through. “It’s better to take voluntary separation with a good package, than to keep waiting until the axe begins falling,” another source told Mmegi.
For her part, Sejoe said the voluntary separation process was initiated to “explore opportunities to realign our staffing levels with current business needs given the ever-evolving business operating environment”.
She added that Debswana had continued or initiated several interventions to deal with the downturn in sales.
“In addition to previously implemented cost-optimization strategies such as extending tyre lifespan, improving fuel efficiency, and increasing productivity, Debswana has undertaken several initiatives to enhance operational efficiency. “These include process automation and digitalisation to optimise resource utilisation and reduce waste, supplier contract renegotiations to ensure cost competitiveness, energy efficiency initiatives aimed at reducing operational costs while contributing to sustainability goals as well as workforce optimisation strategies, including voluntary separation programmes, to align staffing levels with business needs.”
Debswana expects steady recovery of the industry by the end of this year.
