Summary
- Berlin-based Jumia Technologies recently shut down operations in Cameroon, Tanzania and Rwanda.
- Kenya is its largest market in East Africa where it had 686 employees as of December 2018.
- Its parent company made a net loss of €163.4 million (Sh18.3 billion) in the nine months ended September, representing a 39 percent jump from €117.3 million (Sh13.1 billion) the year before.
E-commerce firm Jumia Kenya has sent home about six percent of
its local employees, coming days after its parent company announced the
closure of its operations in three countries.
Berlin-based Jumia Technologies recently shut down operations in Cameroon, Tanzania and Rwanda.
“After
careful consideration, we have made the difficult decision to undergo
some headcount reductions across our business verticals and
geographies,” Jumia’s local office said in a statement.
“While
decisions like these are always difficult, we need to put our focus and
resources where they can bring the best value and help Jumia thrive. We
are supporting all impacted employees during this period of
transition.”
The company did not specify the number of
affected employees. Kenya is its largest market in East Africa where it
had 686 employees as of December 2018.
Its parent company made a net loss of €163.4 million (Sh18.3
billion) in the nine months ended September, representing a 39 percent
jump from €117.3 million (Sh13.1 billion) the year before.
This
was despite sales rising 28 percent to €111.1 million (Sh12.4 billion)
from €86.7 million (Sh9.7 billion), with the larger loss brought by a
surge in administrative and other expenses.
Jumia says
it will continue to balance growth with profitability, adding that it
will seek to focus on more promising markets that can help it reverse
its losses.
“We regularly conduct portfolio reviews
which assess the allocation of our resources to business verticals and
geographies against multiple criteria, including financial performance,
commercial environment as well as the ease and cost of doing business,”
the company said.
“As part of this year’s portfolio
review, a number of initiatives are underway…These initiatives are aimed
at enhancing our business focus and allocating investment, resources
and talent to those areas that we believe present the best opportunities
to support the company’s long-term growth and the path to
profitability.”
Jumia also announced the shutting down
of its travel agency business, Jumia Travel, and transferred the
operations to booking portal Travelstart.
Jumia Travel had offices in six countries with Africa and this includes Dar es Salaam, Abidjan and Lagos.
“In
TravelStart, we have found the perfect partner to build on the success
Jumia Travel has achieved so far,” the company said in a statement.
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