Unique: Twiga lays off 283 employees citing tough business environment

Twiga Foods has let go of a 3rd of its employees. Contrary to rumours, the corporate has not shut down its operations in Uganda.

E-commerce meals distribution firm, Twiga, is present process operational restructuring resulting from tough market situations, a course of that may lay off a 3rd of its 850 everlasting employees. The adjustments that Twiga has made should not sudden. The firm’s CEO, Peter Njonjo, instructed TechCabal that Twiga has been “on a transformative path in the last few months to become a lean, agile, cost-efficient organisation, undertaking several interventions to adopt and sustain the business during these economic times.”  To this finish, Twiga reviewed its working mannequin and value to “ensure organisational structure is fit for purpose”.

Njonjo additionally denied rumours of the closure of Twiga’s Ugandan operations. “There is no closure of operations. We continue to operate in Uganda and our farm is operational,” stated Njonjo. Yet, the most recent layoffs will have an effect on employees throughout all markets. An estimated 283 folks will probably be made redundant, and Twiga stated they are going to be compensated in accordance with labour legal guidelines. “Twiga will offer severance packages in full compliance with applicable labour laws,” stated Njonjo.

In June, TechCabal reported that Twiga adjusted its industrial mannequin, ditching its inner gross sales group in favour of unbiased contractors who’re retained on the idea of their efficiency. It factors to an organization trying to minimize prices wherever it may. “The business has undertaken strategic operating adjustments to enhance its service delivery capacity over the past few months. This has been influenced by the current business environment where people’s purchasing power continues to decline,” Twiga stated in a press release.

Twiga will proceed to function Twiga Fresh, a meals farming and distribution vertical it launched in May 2022. Backed by a $10 million funding, Twiga Fresh cultivates onions, tomatoes, and watermelons on a 650-hectare farm in Taita Taveta. “Twiga continues to operate its farm. We have been running the farm operation for a year now, and we continue to incorporate our learnings,” Njonjo stated.

When TechCabal requested how Twiga is rebuilding confidence amongst its traders and clients, Njonjo responded, “Our investors are fully supportive of this transformation with the objective that Twiga is continuing to provide affordable good and services to our customers into the foreseeable future.”