Kenyan e-commerce platform, Copia, which caters to low-income households, has recently let go of 25% of its workforce. The reason cited by the company for these layoffs is primarily due to high labor costs and the desire to enhance profitability.
The company’s website did not have any published news about the layoffs. However, in a statement to TechCabal, the company confirmed that the third round of layoffs affected 350 employees.
According to Copia, the majority of its employees will not be affected by the upcoming changes. However, in accordance with Kenyan labour laws, those who are impacted will receive a one-month notice and will leave Copia before September. The management at Copia will assess the affected staff during this one-month period and communicate their employment status to them afterward.
Copia has reduced its workforce for the third time this year. They laid off 50 Kenyan workers earlier in the year and closed their Ugandan operations in April 2023, which affected 300 employees. In total, 700 people have been let go by Copia in the year 2023.
Organisations lay off employees for various reasons such as financial difficulties, restructuring, changes in business strategies, or other factors. In Copia’s case, it was due to the costs of maintaining its 1,800 employees, although it secured $50 million early last year in a Series C round. The new change will see Copia Kenya reduce labor costs in order to focus on improving profitability. It’s important to mention that the affected employees will receive a severance package and other benefits.
The Kenyan-based e-commerce platform targets middle-to-low-income African consumers providing access to a smooth shopping experience in the underserved market. The company had sought to expand to the African retail market and first expanded to Uganda after successfully raising funding.
