Copia Global reportedly dismisses entire workforce

Copia Global, a Kenyan B2B e-commerce company, has recently taken drastic measures by laying off over 1,000 employees two weeks ago, and now, it is reportedly dismissing its remaining workforce of 1,500. The staff expected to receive their termination notices on Friday.

The company’s troubles surfaced last month when CEO Tim Steel hinted at looming challenges, suggesting that layoffs and salary issues were on the horizon. He even indicated that, should the workforce reductions fail to alleviate the situation, a complete shutdown might be necessary.

Despite having been established in 2012 and raising a substantial $123 million through eight funding rounds, Copia Global found itself in a financial bind, necessitating a significant reduction in its workforce by about 1,000 positions. The difficulties in securing additional funding were cited as the primary reason for the downsizing. Even after securing $20 million in a Series C extension round in December 2023, the company was unable to reverse its fortunes.

The situation deteriorated further when Copia had to bring in administrators from KPMG on May 24, 2024. Administrator Makenzi Muthusi disclosed that while funds were available for May’s payroll, complications with bank accounts led to payment delays.

Compounding the company’s woes, Copia suspended operations in six Kenyan markets on May 31, 2024, and placed the employees from those markets on leave.

This is not Copia’s first instance of scaling down operations. The company had expanded into Uganda in 2021, but by April 2023, the challenging economic environment forced them to withdraw from the country and lay off a significant number of staff.

Despite strategic initiatives such as forming a partnership with Visa and promoting their mobile application in 2023, Copia Global was unable to achieve the necessary boost in sales. These efforts, which were intended to enhance the company’s market presence and customer engagement, ultimately fell short of reversing the downward trend in revenue.

Now, facing the reality of having laid off its entire workforce and confronting an uncertain future, the path forward for Copia Global remains unclear. With its operations severely impacted and no personnel to drive the business, the company is at a critical juncture where its survival and next steps are in question. The situation presents a significant challenge for the once-promising startup, as it must navigate through this tumultuous period and determine a viable course of action.