Hot off the heels of Jumia shutting down operations in Cameroon and Tanzania, the African e-commerce giant has laid off 30 employees in its Kenyan office, translating to a 6% cut in its workforce.
Sources speaking to Gadgets Africa indicate that the move is parallel to MTN and Rocket Internet’s (the companies that own Jumia) deliberate decision to cut down on its costs.
Last month, the company announced that it had made losses of nearly 1 billion dollars, something that may have been a wake-up call that has seen the company rush to restructure its operations in the country.
A Struggling Company
Jumia has been bleeding cash throughout its life, in the company’s attempt to build a giant e-commerce platform that spans several African countries.
Despite having a huge wallet to play around with in terms of VC capital, ever since Jumia IPOd on the New York Stock Exchange earlier this year, things haven’t been going well at all. The company has even lost its unicorn status and its share price dropped to single digits.
Speaking to Gadgets Africa, Jumia Kenya has acknowledged the layoffs. However, the company says that they are working with the affected employees to find suitable placements for them.
As of publishing this piece, Jumia is only operational in Nigeria, Kenya, South Africa, Egypt, Ghana, Morocco, Uganda, Tanzania, Senegal, Rwanda, Ivory Coast, Tunisia, and Algeria.
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[…] of its businesses, Jumia has also embarked on laying off staff in its Kenyan market with about 6% of its workforce there cut off last week. All these have been done within the last one […]