Twiga Foods, the prominent e-commerce and food distribution company based in Kenya, has revealed its plans for a fresh round of workforce reductions, resulting in numerous employees being laid off. This move follows a prior instance in which 211 employees were let go only a few months ago.
The impetus behind this decision is the prevailing high cost of living and challenging economic conditions, which have substantially weakened purchasing power and inflicted adverse effects on various business enterprises.
Twiga Foods, functioning as a business-to-business (B2B) technology enterprise that acts as an intermediary between agricultural producers, including farmers, and manufacturers of fast-moving consumer goods, has identified certain positions as superfluous after conducting a comprehensive assessment of its operational structure and expenditure.
Reason Why Twiga Foods is Trimming its Workforce
In a statement released by Twiga Foods on Saturday, the company expressed,
“As part of these initiatives to enhance efficiency, the organization has meticulously reviewed its operational blueprint and cost structure to ensure alignment with its intended objectives. Unfortunately, as a result of this endeavor, the organization has identified certain positions as redundant, strictly adhering to all relevant labor regulations.”
However, the statement refrained from disclosing the precise number of employees who will be impacted by these measures which will further downsize the workforce. In the previous year, the company released 211 employees out of its total workforce of over 1,000, constituting 21 percent of its personnel. This action was undertaken during a restructuring process that culminated in the elimination of its internal sales team.
More on Twiga Foods
Additionally, in May of this year, the company terminated contracts with 130 independent sales agents due to subpar performance. The company clarified that it was exclusively retaining agents whose sales performance displayed positive trends.
Notably, Twiga Foods forged a partnership with the government in March of this year to oversee irrigated maize production within the Galana-Kulalu project. Moreover, in the preceding year, the technology company secured a loan amounting to Sh300 million from the state-owned Hustler Fund to augment its operational capabilities.
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