Zimbabwe’s Top Diamond Miner ZCDC Cuts 400 Jobs Amid Global Industry Crisis
- Southerton Business Times
- 2 days ago
- 3 min read
The Zimbabwe Consolidated Diamond Company (ZCDC) has laid off approximately 400 workers as it battles the dual blows of collapsing global diamond prices and rising operational costs. The retrenchment exercise, confirmed in July 2025, is a stark indicator of the crisis engulfing Zimbabwe’s diamond industry.
“Diamond prices have dropped significantly on the global market, forcing us to make difficult decisions to reduce costs and keep the company operational,” - “Cutting jobs was a last resort to avoid complete shutdown.”
From Hope to Hardship: ZCDC’s Decline
Established in 2016 as a state-owned enterprise to manage Zimbabwe’s diamond resources following the expulsion of private firms over allegations of looting, ZCDC was once viewed as a stabilizing force. However, its recent financial troubles have reversed those fortunes.
The global price of natural diamonds has fallen by an estimated 26% since 2022, largely driven by the growing popularity of lab-grown diamonds among younger buyers in the US, Europe, and Asia. These synthetic alternatives often sell for half the price of natural stones, undercutting demand for ZCDC’s main product.
Union Outrage Over “Unfair” Layoffs
The Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU) has condemned the retrenchments, claiming up to 300 workers have been dismissed without severance pay.
“The process has been marred by unfair practices, with local workers—who have been the backbone of operations—bearing the brunt,” said Justice Chinhema, ZDAMWU General Secretary. “The diamond sector is on the brink of collapse unless urgent reforms are implemented.”
One retrenched worker shared his frustration:
“We invested years of hard work into this company. Losing our jobs without compensation is devastating for us and our families.”
A Symptom of Wider Mining Sector Troubles
ZCDC’s crisis is not isolated. In 2024 alone, 1,216 mining jobs were lost across Zimbabwe, up from just over 300 the previous year. According to the Chamber of Mines of Zimbabwe, 69 mines retrenched staff in 2024, citing low revenues, high input costs, and poor investor sentiment.
While gold and platinum producers recorded modest gains, diamonds remain the outlier, with average prices for a one-carat stone plunging from US$6,000 in 2022 to under US$4,500 by the end of 2024.
ZCDC also continues to battle legacy financial issues. In 2024, it was fined US$1.73 million for unpaid taxes including VAT and income tax. Auditors flagged chronic compliance failures, which management attributed to severe cash flow constraints.
Labor Unrest Spreads Across Sector
The crisis is mirrored across other major players:
Murowa Diamond Mine has halted operations following protests over five months of unpaid wages.
Anjin Investments workers have also staged demonstrations, demanding back pay and fair treatment.
These incidents reflect deepening unrest among mining workers, many of whom are now facing hunger and poverty as employers fail to meet wage obligations.
Calls for Government Intervention and Reform
ZDAMWU has called on the Zimbabwean government to:
Ensure prompt payment of outstanding wages
Enforce fair retrenchment procedures
Invest in restructuring the diamond value chain
Modernize operations to compete with synthetic diamond producers
“The government must act decisively to stabilize the industry,” Chinhema warned. “Without intervention, we risk losing this vital economic pillar.”
Outlook: Uncertain Recovery
ZCDC maintains that the company will continue to operate at reduced capacity while waiting for a recovery in international prices.
“We remain committed to contributing to the economy, despite current challenges,” a spokesperson said. “We hope that global markets stabilize and allow us to rebuild.”
Yet the retrenchments raise deeper questions: Can Zimbabwe’s state-owned mining ventures survive in volatile global markets? And will government reforms arrive in time to save the thousands of workers whose livelihoods depend on them?
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