Jumia fires over 900 workers, stops food delivery operations in Egypt, 2 others

Leading pan-African e-commerce platform, Jumia, has sacked no fewer than 900 workers in order to reduce its cost of operation.

This was contained in the company’s 2022 fourth quarter (Q4) financial report released recently.

Jumia said it experienced an operating loss of 41 percent year-over-year, reaching $49.8 million in Q4 of 2022; forcing the company to suspend its “logistics-as-a-service offering in a number of geographies”.

The e-commerce firm also discontinued its food delivery operations in Egypt, Ghana and Senegal where “this activity was sub-scale, resulting in unit economics dilution with limited consumer lifetime value upside”.

Jumia explained that it decided to cease a number of activities as part of its goal of focusing on core areas of the business with attractive returns on investments and clear ecosystem benefits.