Kenyan e-commerce and food distribution start-up Twiga Foods has announced a fresh round of layoffs.
Agri-Tech firm Twiga Foods announced that it is firing 59 employees as part of its business restructuring efforts.
This marks the second round of job cuts within a year, following the dismissal of 283 employees in August 2023.
“The delivery of these efficiency enhancements to the organization will regrettably impact 59 positions,” the company said in a notice.
“These changes are crucial as Twiga accelerates towards profitability and continues its mission of revolutionizing food distribution in Africa through innovative digital solutions.”
These financial challenges deepened earlier this year when Twiga became embroiled in a legal battle with Incentro, a Google cloud services reseller, over an unpaid bill of $261,878 (Ksh 33,538,500).
It was later settled after a reported $35 million (Ksh.4.5 billion) round.
The lawsuit not only exposed the startup’s financial struggles but also brought to light broader issues related to its ability to manage vendor relationships and maintain its workforce.
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Twiga Foods Affected with Layoffs
At the close of 2022, the company sent home 21 per cent of its workforce, representing 211 of its over 1,000 employees, amid a restructuring that eliminated its in-house sales team.
The business-to-business (B2B) marketplace platform that sources farm produce directly from farmers and delivers it to urban retailers later laid off 267 of its 810 workers in August 2023.
Twiga said it was adjusting operations amid the biting economic times which have made people’s purchasing power decline.
The layoffs triggered speculation about the health of the ten-year-old start-up founded in 2013 by Peter Njonjo and Grant Brooke.
The company, which has raised over Ksh25 billion in funding over the past decade, has struggled with cash flow issues, leading to delays in paying salaries and suppliers.
In March 2024, amidst these growing challenges, Twiga’s founder and CEO, Peter Njonjo, left his position following a successful $35 million (Ksh 4.5 billion) fundraising round through convertible bonds.
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This development sparked rumors and speculation about the circumstances surrounding his departure, with some insiders suggesting that Njonjo may have been pushed out due to the company’s ongoing difficulties.
Njonjo’s exit marked a significant turning point for Twiga, as he had been a key figure in its rise as a leading player in the African tech and agribusiness sectors.
Following Njonjo’s departure, Charles Ballard who was the CEO of E-commerce platform; Jumia was appointed as Twiga’s new CEO in May 2024.
The company first made public the exit of Njonjo on December 14 last year when it announced that the long-serving CEO had taken a six-month leave just after he steered the firm to close a new round of funding.
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