According to the firm’s 2022 Fourth Quarter Financial Statements, Jumia laid off 900 employees to save money, resulting in a 20% reduction in workforce.
Jumia stated in its financial statement dated February 16, 2023, which was obtained on Friday, that cost reduction is a key priority in the company’s strategy for 2023.
Egypt, Ghana, and Senegal are among the countries affected. Jumia’s Dubai office was also closed, with the company relocating its employees to Africa.
Jumia announced the suspension of its “logistics-as-a-service” business in some markets, as well as the discontinuation of food delivery operations in Egypt, Ghana, and Senegal.
“In the fourth quarter of 2022, we undertook significant headcount reductions, resulting in over 900 position terminations, corresponding to a 20 percent headcount reduction.
“We have streamlined our organizational structure, creating leaner, more effective teams fully committed to the execution of our strategy.
“As part of our streamlining efforts, we have significantly reduced our presence in Dubai where certain management functions were located, reducing headcount by over 60 percent. The majority of the remaining employees are being relocated to our African offices, where they will be closer to our customers, sellers, and operations.
“We expect these headcount reductions to allow us to save over 30 percent in monthly staff costs starting from March 2023, as compared to the October 2022 staff cost baseline. According to Jumia, the implementation of these organizational changes resulted in $3.7 million in one-time restructuring costs booked in the fourth quarter of 2022.
Jumia’s cost structure has been reduced in response to a $49.8 million operating loss in the fourth quarter of last year.
Culled from Ripples Nigeria
