Kenyan B2B e-commerce platform, Twiga has officially announced a new round of layoffs that is set to affect 283 workers which is 33% of its remaining 850 workforce. This is in line with the company’s efficiency interventions and position it for the tough economic environment which has also eroded the people’s purchasing power.
In a recent statement, Twiga Foods announced, “As part of these efficiency interventions, the company has reviewed its operating model and costs to ensure its organizational structure is fit for purpose. Regrettably, this exercise has seen the company declare some roles redundant across the organization in full compliance with the applicable labour laws ”.
Twiga Foods is a B2B e-commerce platform that is transforming African retail by giving vendors access to the best prices on food, groceries, and more 24/7 through their super app. The app is a platform that supplies fresh fruits and vegetables sourced from farmers in rural Kenya to small and medium-sized vendors, outlets, and kiosks in Nairobi.
Twiga Foods has been going through a series of layoffs in recent months, late last year it laid off 21% of its then 1 000 workforce, amid a restructuring that eliminated its in-house sales team. In May 2023, it again laid off 130 independent sales agents over poor performance.
In another move, the company is planning to change its internal delivery system from using leased trucks to a new approach of hiring contractors based on the number of users they serve. It has then launched a logistics marketplace and through a tool within the marketplace called “route to market”, it is eyeing a 40% reduction in its logistics costs.
In 2021, Twiga Foods raised US$ 50 million in a Series C funding round after raising another US$ 30 million Series B round ($23.75 million equity and $6.25 million debt) in 2019. To date, it has raised US$157.1 million in funding. In 2022, Twiga Foods was listed 2022 Times 100 Most Influential Companies
Twiga has also closed its 10 distribution centers in Nairobi and now operating from a temporary warehouse. The company has been going through a series of strategic changes as it tries to cut costs and remain efficient and operational in the wake of the challenging economic environment and other myriad of challenges often facing most African startups.