Twiga Foods, a leading B2B e-commerce technology firm in Africa, has announced that it has let go of its employees as part of its strategic operating adjustments to cope with the declining purchasing power of consumers.
The company, which connects farmers with vendors to provide affordable and high-quality food and groceries, said in a press release that it has reviewed its operating model and costs to ensure its organization structure is fit for purpose.
“Regrettably, this exercise has seen the company declare some roles redundant across the organization in full compliance with applicable labour laws. The review has further necessitated the resizing of its operating model across its regions,” the press release said.
The news was first reported by Techcabal, a media platform that covers technology and innovation in Africa. According to Techcabal, Twiga Foods had about 850 employees before the layoffs.
Twiga Foods did not disclose the exact number of affected employees or the regions where the layoffs occurred.
The press release said that Twiga Foods is on a transformative path to become a lean, agile, and cost-efficient organization, and that it has undertaken several interventions to adopt and sustain the business during these economic times.
The company also said that it is setting its sights on a future where Africa’s food security is radically transformed by technology, and that it will continue to create lasting value and make a positive impact on the region.
Twiga Foods was founded in 2014 by Peter Njonjo and Grant Brooke. It has raised over $100 million in funding from investors such as Goldman Sachs, IFC, TLcom Capital, and Creadev. It operates in 12 cities across Kenya and serves over 140,000 vendors and 1,000 farmers daily.