Online retailer, Jumia Kenya, has sent home a number of its staff, as it decrys losses it is experiencing in its operations.
Jumia let go of six percent of its workers just days after its parent company Jumia Technologies closed down operations in three countries; Tanzania, Rwanda and Cameroon.
Jumia Kenya, in a statement said that they had come to that decision so that they can direct their focus and resources where there can be value and good returns for the e-commerce firm.
While the number of laid off employees has not been disclosed, the firm has promised that as it restructures itself, the affected staff will be supported during the transition period.
Jumia Technologies, often referred to as ‘The Amazon of Africa’ for its large online shopping base in the continent, led by Kenya since it began its operations in 2012, has in the recent past experienced losses.
Much as Jumia’s 2019 sales rose by 28 percent to 12.4 billion shillings, by September 2019, the company’s losses are said to have shot up to 18.3 billion shillings, translating to a 39 percent loss from 2018’s 13.1 billion shillings.
The losses experienced were reportedly caused by an inrush in not only administrative expenses but also other crucial expenses it had to indulge in.
Jumia reports that since they conduct regular portfolio reviews, this year’s review has hatched a plan to bring forth initiatives that will help them improve on areas that will present their company with growth opportunities.
“In our reviews, we assess allocation of resources to business verticals and geographies. As part of our portfolio review, we would wish to focus our allocation of resources to areas that will guarantee long-term growth for our business,” noted Jumia in a statement.
According to Jumia, the decision to focus on areas where there is promising markets for growth with profitability was informed by their need to reverse the losses they have already experienced.