Jumia appears to be intensely reviewing its portfolio in the 12 African countries it is currently present.
While the ‘Amazon of Africa’ has shut down operations in the past few weeks in Cameroon and Tanzania, there are indications that it has laid off about 30 employees in its Kenyan operation.
According to Gadgets Africa which broke the news, this layoff translates to a 6% cut in its Kenyan workforce. The report revealed that the job cuts are an attempt by Jumia’s parent company (Rocket Internet) to cut costs.
Jumia’s 3rd quarter report shows that it is nowhere near profitability despite making a revenue of $44.2 million. Regardless, the losses keep rising. For the Q3, the loss stood at $55 million, which is higher than the $45 million it recorded in the same quarter in 2018.
It is arguably now apparent that Jumia will either shut down or downsize in its remaining markets-Nigeria, Egypt, Morocco, Kenya, Ivory Coast, South Africa, Tunisia, Algeria, Ghana, Senegal, Uganda and Rwanda.
It is a presently a question of when as the ‘Alibaba of Africa’ is desperately looking for ways to cut cost which has been its focus since it listed on the New York Stock Exchange.
