African eCommerce leader Jumia reported solid financial performance for the third quarter of 2025, even as it implemented workforce reductions and accelerated its adoption of Artificial Intelligence (AI) to streamline operations. Between December 31, 2024, and September 30, 2025, Jumia reduced its workforce by 7%, bringing total staff to 2,010 employees.
This move aligns with the company’s strategy to optimize costs and improve operational efficiency. Despite the downsizing, Jumia delivered $45.6 million in Q3 revenue, marking a 25% year-on-year increase from $36.4 million in Q3 2024. The growth underscores strong customer demand and operational resilience.
The company reported an operating loss of $17.4 million, a 13% improvement from $20.1 million in the prior year. Jumia reiterated its commitment to achieving breakeven on a Loss Before Income Tax basis by Q4 2026 and full-year profitability by 2027.
CEO Francis Dufay emphasized that Jumia has reached a critical inflection point:
We continue to strengthen our cost structure and sharpen operational discipline, reinforcing our path toward profitability. Our focus remains on execution and customer engagement as we build a more efficient business. We believe we are on track to reach breakeven in Q4 2026 and achieve full-year profitability in 2027, positioning Jumia for long-term growth and value creation.
Key Growth Drivers
- Orders surged by 34%, fueled by strong consumer demand.
- Nigeria led the charge, posting a 30% increase in orders and a 43% rise in Gross Merchandise Value (GMV).
- Investments in customer acquisition and engagement drove growth, with advertising spend up 18% to $5.2 million.
Cost Management and AI Integration
While general and administrative expenses declined 7% to $17.6 million, supported by lower taxes, staff costs and professional fees rose slightly due to currency translation effects. However, Jumia’s strategic workforce reduction and AI adoption are expected to deliver long-term savings.
AI-driven initiatives are transforming operations:
- Customer service, marketing, and technology workflows are increasingly automated.
- These changes are streamlining processes, enhancing scalability, and reducing operating expenses.
Dufay noted:
AI-driven workflows are improving efficiency and supporting a leaner cost structure. These initiatives are contributing to ongoing reductions in total operating expenses and improved scalability.
Looking Ahead
Jumia expects general and administrative expenses to continue declining, positioning cost discipline as a key driver of its profitability roadmap. As global businesses embrace AI to cut costs, Jumia’s strategy reflects a broader trend toward automation and leaner operations.
