Kenyan companies have been ranked among the top 10 tech companies in Africa with the highest number of layoffs since 2020.
A report by United Kingdom-based company Business Financing, has listed Twiga foods and Copia in Kenya among the ten companies.
The report has detailed that Copia fired 350 employees in 2023, the fourth highest number in Africa between the period.
As per the report, Twiga came in at number six for firing 283 employees in August 2023. Twiga also came in at number 7 for having fired an additional 211 employees in November 2022.
At the time, former Twiga foods co-founder and CEO, Peter Njonjo, cited the declining purchasing power of customers and the increased cost of capital as reasons for the mass layoffs.
“In fourth place comes the Kenyan e-commerce platform Copia, which laid off 350 workers in July 2023 to reduce labor costs and maximize profits. Twiga,
“Another Kenyan e-commerce platform, appears twice in the list with two separate layoff events, the most significant of which occurred in August 2023 when 283 employees — or a third of the firm’s workforce — were laid off,” read the report in part.
Also Read: Peter Njonjo Resigns as Twiga Foods CEO After 10 Years
Other Companies on the List
Nigerian online retailer Jumia was number one on the list for firing 900 employees in a single event in November 2022. It was the highest number ever seen in Africa in the period.
“This event affected 20% of the firm’s workforce across 11 markets. It was enacted as part of a “streamlining effort” by the business, also known as the first technology company in Africa, to be listed on the New York Stock Exchange,” the report explained.
At the same time, two other Nigerian tech firms rank second and third. B2B e-commerce firm Alerzo fired 400 employees in June 2023, while fintech brand Renmoney fired 391 employees in April 2020.
Others include Wave in Senegal which fired 300 employees in July 2022, mPharma in Ghana which fired 150 employees in April 2023, Alerzo in Nigeria which fired 100 employees in November 2023 and Bitmex in Seychelles which fired 75 employees in April 2022.
Also Read: Nairobi-Based Company Firing 1000 Employees Unveils Restructuring Plan
Copia Announces Mass Layoffs
In May, Copia announced that it would fire at least 1,000 employees from various departments across the country.
Explaining the reason for the move, Copia’s management indicated that it was undergoing financial challenges and was therefore unable to sustain the employees.
Additionally, the e Commerce company indicated that it was undergoing a restructuring process in a bid to navigate the company’s financial challenges.
In a notice, the company said that it had hired Makenzi Muthusi and Julius Ngonga from KPMG to lead an administration process aimed at providing direction in sustaining its operations.
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