Jumia, an African e-commerce marketplace, has laid off 20 per cent of its staff — about 900 workers as part of its cost-cutting efforts.
“We undertook headcount reductions, resulting in over 900 position terminations, corresponding to a 20 percent headcount reduction in the fourth quarter of 2022,” Jumia said.
Jumia, as part of streamlining efforts, has reduced presence in Dubai where certain management functions were located, reducing headcount by over 60 percent.
Jumia expects to save over 30 percent in monthly staff costs starting from March 2023, as compared to the October 2022 staff cost baseline.
The implementation of these organizational changes resulted in $3.7 million in one-off restructuring costs booked in the fourth quarter of 2022.
The marketplace firm discontinued Jumia Prime, which had an immaterial contribution to GMV and Revenue, suspended their logistics-as-a-service offering in a number of geographies, scaled back on first-party grocery in Algeria, Ghana, Senegal and Tunisia, and discontinued their food delivery operations in Egypt, Ghana and Senega.
