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Jumia Sacks 900 Workers To Reduce Cost Of Operation by errandsdotng: 7:55pm On Feb 17, 2023 |
Jumia, a pan-African e-commerce platform, says it laid off over 900 workers in order to reduce its cost of operation. The company, in its 2022 fourth quarter (Q4) financial report released recently, said the cut represents 20 percent of its general workforce. Jumia said it experienced an operating loss of 41 percent year-over-year, reaching $49.8 million in Q4 of 2022; forcing the company to suspend its “logistics-as-a-service offering in a number of geographies”. The e-commerce firm also discontinued its food delivery operations in Egypt, Ghana and Senegal where “this activity was sub-scale, resulting in unit economics dilution with limited consumer lifetime value upside”. Jumia explained that it decided to cease a number of activities as part of its goal of focusing on core areas of the business with attractive returns on investments and clear ecosystem benefits. The organisation added that it is delivering on its strategy to reduce losses and accelerate progress toward profitability with a major focus on enhanced cost discipline as well as accelerating monetisation. “Cost reduction is another key priority of our strategy. We are working across the full cost structure to drive efficiencies,” the report reads. “In the fourth quarter of 2022, we undertook significant headcount reductions, resulting in over 900 position terminations, corresponding to a 20 percent headcount reduction. “We have streamlined our organisational structure, creating leaner, more effective teams fully committed to the execution of our strategy. “As part of our streamlining efforts, we have significantly reduced our presence in Dubai where certain management functions were located, reducing headcount by over 60 percent. Most of the remaining staff are being relocated to our African offices, closer to our consumers, sellers, and operations. “We expect these headcount reductions to allow us to save over 30 percent in monthly staff costs starting from March 2023, as compared to the October 2022 staff cost baseline. The implementation of these organisational changes resulted in $3.7 million in one-off restructuring costs booked in the fourth quarter of 2022.” The company also announced gross profit growth of up to 22 percent year-over-year, stating that marketplace revenue reached an all-time high of $41.2 million. Commenting on the development, Francis Dufay, chief executive officer (CEO), Jumia, said efforts are being made to further strengthen their fundamentals and accelerate profits. “While the fourth quarter results only reflect a fraction of the actions we are taking, we are seeing early signs of success and remain focused on execution,” Dufay said. “In light of these encouraging signs, we expect a sharp reduction in adjusted EBITDA loss from $207 million in FY2022 down to $100-120 million in FY2023. “We remain more-than-ever confident about the growth opportunity across our markets and are making fundamental improvements to our consumer value proposition which will help us drive sustainable long-term growth.” Source: https://www.thecable.ng/jumia-sacks-900-workers-to-reduce-cost-of-operation 4 Likes 1 Share
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Re: Jumia Sacks 900 Workers To Reduce Cost Of Operation by madridguy(m): 8:00pm On Feb 17, 2023 |
1 Like 1 Share |
Re: Jumia Sacks 900 Workers To Reduce Cost Of Operation by santakris(m): 8:01pm On Feb 17, 2023 |
......and the problems continue. May we not witness this kind of government again 76 Likes 4 Shares |
Re: Jumia Sacks 900 Workers To Reduce Cost Of Operation by WibusJaga: 8:04pm On Feb 17, 2023 |
. Vote Peter Obi for a new Nigeria. Else, it will be Business As Usual with PDAPC, & the ugly trend continues. 96 Likes 13 Shares
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Re: Jumia Sacks 900 Workers To Reduce Cost Of Operation by Creamcrest(m): 8:05pm On Feb 17, 2023 |
Ghh |
Re: Jumia Sacks 900 Workers To Reduce Cost Of Operation by Nobody: 8:07pm On Feb 17, 2023 |
Nigeria anjiriya when we go get sense? 4 Likes 2 Shares |
Re: Jumia Sacks 900 Workers To Reduce Cost Of Operation by thelegend1(m): 8:20pm On Feb 17, 2023 |
It was expected. Most tech business took up more manpower than required during the Covid-19 outbreak. Now that things are back to normal with business processes and logistics optimized, there's no need bearing the excess overhead costs. I would advice anyone in Nigeria to find something to produce and sell across supply chains rather than putting their hope on a 9 to 5 job. 126 Likes 7 Shares |
Re: Jumia Sacks 900 Workers To Reduce Cost Of Operation by habsydiamond(m): 8:38pm On Feb 17, 2023 |
Those 900 sacked workers will be joining the long lists of jobless Nigerians.. Apc tried oo cos dem created jobs like Npower a 2years job What is expected of the participants after that 2years To become jobless again.. excuse me please, is that a job 42 Likes 4 Shares |
Re: Jumia Sacks 900 Workers To Reduce Cost Of Operation by donestk(m): 9:12pm On Feb 17, 2023 |
Front page pls |
Re: Jumia Sacks 900 Workers To Reduce Cost Of Operation by DanasabeZaki: 12:22pm On Feb 19, 2023 |
Many ecommerce are effected 1 Like 2 Shares |
Re: Jumia Sacks 900 Workers To Reduce Cost Of Operation by Nobody: 5:03pm On Feb 20, 2023 |
Tinubu effects, bastard. 9 Likes 4 Shares |
Re: Jumia Sacks 900 Workers To Reduce Cost Of Operation by Offpoint1: 5:03pm On Feb 20, 2023 |
Re: Jumia Sacks 900 Workers To Reduce Cost Of Operation by ukehnonny: 5:03pm On Feb 20, 2023 |
Re: Jumia Sacks 900 Workers To Reduce Cost Of Operation by MikeMicheal(m): 5:03pm On Feb 20, 2023 |
New money VS Old money, no allow people do unnecessary shopping again. 21 Likes |
Re: Jumia Sacks 900 Workers To Reduce Cost Of Operation by ecolime(m): 5:03pm On Feb 20, 2023 |
900? Where will they start from? BTW, APC is a curse to this nation, vote wisely. 16 Likes |
Re: Jumia Sacks 900 Workers To Reduce Cost Of Operation by bigdammyj: 5:03pm On Feb 20, 2023 |
Noted. |
Re: Jumia Sacks 900 Workers To Reduce Cost Of Operation by ebuk4real(m): 5:03pm On Feb 20, 2023 |
We go survive |
Re: Jumia Sacks 900 Workers To Reduce Cost Of Operation by yesloaded: 5:03pm On Feb 20, 2023 |
Re: Jumia Sacks 900 Workers To Reduce Cost Of Operation by WHITELIGHTER: 5:03pm On Feb 20, 2023 |
Long time coming |
Re: Jumia Sacks 900 Workers To Reduce Cost Of Operation by airsaylongcome: 5:04pm On Feb 20, 2023 |
O seti go 1 Like |
Re: Jumia Sacks 900 Workers To Reduce Cost Of Operation by Nobody: 5:04pm On Feb 20, 2023 |
santakris: It’s a global trend Sir! The world economy is slowing down! 20 Likes 4 Shares |
Re: Jumia Sacks 900 Workers To Reduce Cost Of Operation by Tallesty1(m): 5:04pm On Feb 20, 2023 |
The hardship bites harder everyday. Everybody is tired and complaining yet some idiots will call you the children of hate because you hate the originators of these hardships. APC supporters are generally evil. 26 Likes |
Re: Jumia Sacks 900 Workers To Reduce Cost Of Operation by dele1727: 5:04pm On Feb 20, 2023 |
santakris: 1 Like |
Re: Jumia Sacks 900 Workers To Reduce Cost Of Operation by Hollyharjii: 5:04pm On Feb 20, 2023 |
How will those laid off be feeling right now? Had a bitter experience of such early 2021 May God provide a better offer to those affected 5 Likes 1 Share |
Re: Jumia Sacks 900 Workers To Reduce Cost Of Operation by sofeo(m): 5:04pm On Feb 20, 2023 |
Alright Check my signature |
Re: Jumia Sacks 900 Workers To Reduce Cost Of Operation by PrinceOfLagos: 5:04pm On Feb 20, 2023 |
The APC effect |
Re: Jumia Sacks 900 Workers To Reduce Cost Of Operation by Felabrity: 5:04pm On Feb 20, 2023 |
Job wey no even dey before Thunder fire Buhari and Tinubu 3 Likes |
Re: Jumia Sacks 900 Workers To Reduce Cost Of Operation by ArmaniUhuru: 5:04pm On Feb 20, 2023 |
And APC wants to take over from APC. God forbid BAThing. 1 Like |
Re: Jumia Sacks 900 Workers To Reduce Cost Of Operation by PointZerom: 5:04pm On Feb 20, 2023 |
Buhari was sleeping in his house, Thifnubu went and brought him to inflict hardship on innocent Nigerians. 6 Likes |
Re: Jumia Sacks 900 Workers To Reduce Cost Of Operation by tonykester: 5:04pm On Feb 20, 2023 |
It is well |
Re: Jumia Sacks 900 Workers To Reduce Cost Of Operation by Teacherjobs: 5:05pm On Feb 20, 2023 |
An empty belly |
Re: Jumia Sacks 900 Workers To Reduce Cost Of Operation by iscom(m): 5:05pm On Feb 20, 2023 |
Oh! |
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