African e-commerce food distribution company, Twiga will reduce one-third of its 850 staff as the company undergoes operational restructuring as a result of challenging market conditions.
Twiga has been “on a transformative path in the last few months to become a lean, agile, cost-efficient organisation,” according to the company’s CEO, Peter Njonjo, who spoke with TechCabal about the company’s efforts to adopt and sustain the business in these trying times. To “ensure organisational structure is fit for purpose,” Twiga examined its operational model and costs in order to achieve this.
Njonjo additionally rejected reports that Twiga’s operations in Uganda had been shut down. “There is no closure of operations. We continue to operate in Uganda and our farm is operational,” according to Njonjo.
However, workers in all markets will be impacted by the most recent cutbacks.
According to Twiga, 283 employees are expected to lose their jobs, and they will be compensated in accordance with labour laws.
June TechCabal reported how Twiga changed its business strategy and replaced its internal sales team with independent contractors who are hired and fired based on their performance.
Twiga will keep running Twiga Fresh, the food production and distribution business it debuted in May 2022 and is supported by a $10 million investment.