Twiga Foods, a leading Kenyan e-commerce startup, has announced the layoff of 59 employees as part of its ongoing restructuring efforts.
This move comes after an earlier round of job cuts in August 2023, where 283 employees were let go.
The company says these changes are necessary to achieve long-term sustainability and profitability.
Twiga Foods, known for revolutionizing food distribution in Africa with digital solutions, is making these adjustments to strengthen its business operations.
Despite the layoffs, the company plans to create 25 new jobs in its growth and innovation departments.
The startup has faced financial challenges recently, including a legal dispute with cloud service provider Incentro over an unpaid bill of $261,000 in 2024.
Twiga has also struggled with cash flow issues, making it difficult to pay vendors and employees on time.
In leadership news, Peter Njonjo, the founder and CEO of Twiga Foods, stepped down in March 2024 after securing new funding for the company.
His departure sparked speculation, and he was replaced by Charles Ballard, a former executive at Jumia, in May 2024.
Twiga Foods raised $35 million in convertible bonds from investors in November 2023, including Creadev and Juven.
Njonjo also contributed $1 million of his own money during this fundraising round.
Looking ahead, new CEO Charles Ballard has emphasized that these changes are aimed at improving Twiga’s services and laying a stronger foundation for the company’s future growth.
