JUMIA FIRES 900 EMPLOYEES.

Jumia, an e-commerce startup, claimed that it has fired 900 workers as a result of a 20% reduction in its personnel.

In its Q4 2022 financial results released on Thursday, the business made this disclosure.

“Starting in March 2023, we anticipate that these workforce reductions will enable us to save over 30% on monthly staff expenditures when compared to the baseline staff cost estimate from October 2022.

The firm stated that the workforce reductions were completed in Q4 2022 and added that “the implementation of these organizational changes resulted in $3.7 million in one-off restructuring charges recognized in the fourth quarter of 2022.”

The e-commerce company additionally disclosed that it has reduced its organizational structure and established more efficient teams that were devoted to carrying out its plan.

In order to maximize the results on our paid web marketing initiatives, we are attempting to rationalize our marketing channels.

In order to effectively increase brand recognition and consideration, we are also committing a larger portion of money to local offline channels.

“We are also developing a thorough strategy to reduce fulfillment costs. This entails a variety of steps, including enhancing the management and productivity of the warehousing employees, minimizing the cost of packing, and many more.

The freight and delivery cost per box dropped by 23% year over year in the fourth quarter of 2022, according to the company, showing early success of the strategy in its e-commerce physical goods industry.