E-Commerce

Breaking News: Jumia Kenya Lays Off Employees in Downsizing Move

10
Jumia Kenya
Image Courtesy Reuters

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.

Check This Out:  Kenyans Are Now Buying Books From Online Stores. Here's Some You Can Check Out

Realme C15 Unboxing: This Battery is Huge

You may also like

10 Comments

  1. […] to Gadgets Africa, sources indicated that they are laying off 30 employees in their Kenyan workforce, which […]

  2. […] Sources who spoke to Gadgets-Africa hinted that the development is tied to a move by Jumia’s backers to cut down on the loss-making company’s running costs and arrest a deluge that has seen Jumia’s losses hit the threshold of a billion dollars since launching in 2012. […]

  3. […] to Gadgets Africa which broke the news, this layoff translates to a 6% cut in its Kenyan workforce.  The report […]

  4. […] struggle with mounting costs and losses, recently highlighted by its recent exit in two countries. Gadgets Africa reports that Jumia Kenya has laid off 30 workers, as its owners seek to reduce costs. Jumia […]

  5. […] struggle with mounting costs and losses, recently highlighted by its recent exit in two countries. Gadgets Africa reports that Jumia Kenya has laid off 30 workers, as its owners seek to reduce costs. Jumia […]

  6. […] It has since shut down its offices in Cameroon and Tanzania and has even recently laid off some of its Kenyan workers in a downsizing […]

  7. […] 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 […]

  8. […] Au cours des trois dernières semaines, Jumia a mis fin à ses activités de commerce électronique au Cameroun et en Tanzanie tout en réduisant ses effectifs au Kenya. […]

  9. […] food and drinks delivery service Jumia Foods in Rwanda effective December 9. The company is also reported to have laid off 6 percent of its workforce in the Kenyan market as part of efforts to cut […]

  10. […] 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 […]

Share Your Opinion