At least 1,000 employees at the Kenyan e-commerce and financial services platform Copia are at risk of losing their jobs after the company announced a mass firing in the following months.
A memo sent to the employees dated May 16, indicated that the company intended to let go of 1,060 employees from various departments across the country.
According to the company’s management, employees will get a one month notice for their exit as stipulated by the law.
Explaining the reason for the move, Copia’s management indicated that it was undergoing financial challenges and was therefore unable to sustain the employees.
“Despite our best efforts to navigate this challenge, we find ourselves in a position where we must consider a far-reaching organizational re-structuring to ensure the sustainability of our operations.
“It is very likely that there will be a reduction in our workforce, and it is possible that the payment of salaries could be at risk,” the memo read in part.
In addition, the memo noted that the company’s leadership met and made the decision to restructure and streamline operations to ensure sustainability, but at a high cost to workforce stability.
Also Read: Mass Job Losses as Popular Betting Company Announces Exit
The Inception and Footprints of Copia in Kenya
Copia, was established in 2013 and was among the most funded start-ups in Kenya, making significant strides in the financial landscape.
Earlier on, it raised Ksh11 billion in funding, showing the confidence and support that investor had in its potential and vision.
Later, in January 2015, the company secured a Ksh524, million Seed II round from DOB Equity, enabling it to scale its operations and continuously develop its products and services.
In September 2018, Copia secured Ksh2 billion Private Equity round from LGT Group enabling it to expand its operations. The upward trajectory continued as the company continued receiving funding and collaborating with different investors including securing multi-million-dollar investments.
However, it has now joined a list of other Kenyan startups that have been paralyzed by financial troubles forcing them to close down or downsize their workforce.
In July 2023, the situation worsened when Copia Kenya laid off about 25 percent of its workforce due to the same economic pressures.
Also Read: PSC Clarifies Mass Recruitment Advert Circulating on Social Media
Betsafe Announces Exit Kenya
The announcement came days after one of the popular betting companies in Kenya Betsafe announced that it is shutting down its operations rendering its employees in Kenya jobless.
In a memo, the company, which launched operations in Kenya in 2020, indicated that the move would take effect on May 14, 2024.
Although the exact number of employees who would be left jobless was not disclosed, the company indicated that it would pay back punters their outstanding balances within seven days.
“We regret to inform you that Betsafe Kenya will cease its operations effective 14 May 2024. Outstanding player balances will be refunded via M-Pesa to the registered number within 7 days,” the company noted in a memo.
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