By Admore Marambanyika

HUNDREDS of workers employed by Bitumen World in various projects are set to lose their jobs after the company announced that it will retrench to cut costs to save it from total collapse as the Zimbabwe government is delaying offsetting its payments.

According to Bitumen, which is largely contracted by the government in the construction sector, the move is “aimed at strengthening its long-term sustainability and maintaining its vital role in infrastructure development across the region”.

One of the major projects undertaken by Bitumen in Zimbabwe include the Harare-Masvingo-Beitbridge Highway.

“This necessary transition reflects a committed effort to adapt to the current economic challenges, including operating under cash flow pressures caused by delayed payments from clients,” the company said in a statement.

“The government is facing delays in settling arrears, affecting various projects including road rehabilitation and dam construction. While efforts are underway to establish payment plans and small payments have been received, these financial constraints have contributed to the company’s decision to realign its operations to remain resilient in a challenging fiscal environment,” Bitumen World chief executive Andre Zietsman said in a statement.

 “While the decision to restructure was not made lightly, it is essential for ensuring our long-term viability and ability to continue contributing meaningfully to infrastructure development in Zimbabwe and beyond,” reads the statement.

Bitumen acknowledged the dedication and professionalism of all its employees but said there was no way out while promising to be fair to affected workers.

“The company is committed to handling this process with respect, transparency and dignity, offering support to those affected through severance packages and transition assistance. The tragedy of these layoffs is that they impact the very people who built this prestigious brand a brand that was wholly created by Zimbabweans,” reads the statement