The rise to becoming Africa’s largest e-commerce site is becoming a lot costly for Jumia. After recently closing shop in Cameroon and Tanzania, reports coming in suggest that Jumia Kenya has laid off at least 30 of its employees.
According to Gadgets Africa, the staff lay off is exactly in line with the company’s stakeholder’s decision to cut down on the costs of operation. It is likely that the urgent need to translate the operations into profits and less losses has Jumia into laying off its staff in Kenya.
However, the company says that they are working with the affected employees to find suitable placements for them.
Just the last month, the e-commerce company revealed that it had made losses of nearly 1 billion dollars. To this, Jumia’s third quarter report indicated nothing near profitability despite making a revenue of $44.2 million and increasing the number of users. The loss stood at $55 million, which is higher than the $45 million it recorded in the same quarter in 2018.
It is apparent that Jumia seems committed to cutting down on its running costs and it is likely that the downsizing will affect a few other markets. The company is now only operational in Nigeria, Kenya, South Africa, Egypt, Ghana, Morocco, Uganda, Tanzania, Senegal, Rwanda, Ivory Coast, Tunisia, and Algeria.
Read About: Jumia ceases operations in Tanzania!