The E-commerce company, Jumia is planning to lay off its employees to cost and create a leaner team. This was disclosed in its Q3, 2022 financial results.
Source: Africa Tech
With this, the company is planning to reduce its losses and move toward profitability. To achieve this, it had to discontinue its First Party grocery offerings in locations where it remains sub-scale. They are also reviewing its shipping program.
Read Also: Jumia Appoints New Management Board
What Is Jumia Saying?
Stating and highlighting its strategies to cut costs, Jumia said,
“We intend to reduce staff costs by streaming our management structure to create a leaner and more agile organization.”
“To support unit economics, we are increasing the minimum basket size threshold for free delivery. We would also restrict its geographical scope to focus on primary cities.”
The company has also revealed that it is also suspending its logistics to non-e-commerce clients. This is in countries where it believes management efforts would be best invested. Hence, improving the logistics efficiency of the core e-commerce business.
It however pledged that it would continue developing this activity in several other countries such as Nigeria, Morocco, and Ivory Coast. These are places where logistics infrastructure is ready to support third-party volume and where proof of concept for this service has already been established.
The CEO Also Has This To Day
Jumia CEO, Francis Dufay commenting on the situation at hand said,
“We have a clear focus for the next chapter of our journey and are taking decisive action to support our path to profitability.
Jumia will bring more focus to the business, directing our efforts and resources to projects and activities that deliver tangible value to our consumers, sellers, and broader ecosystem participants.
We are also enforcing tighter cost discipline and driving efficiencies across the full structure while enhancing the fundamentals of our core e-commerce business to drive user growth.”
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