Twiga Foods, an e-commerce food distribution company, has revealed a fresh wave of layoffs affecting its workforce. The company attributes this move to the challenging economic conditions that have led to declining consumer purchasing power.
In its official announcement, Twiga Foods stated that it has been actively undergoing a transformational journey to streamline its operations, enhance agility, and optimize costs. These measures, it said are aimed at ensuring the company’s resilience in the face of the ongoing economic difficulties.
“As part of these efficiency measures, the company conducted a thorough review of its operational framework and expenditure to align its organizational structure with its objectives. Regrettably, this evaluation has led to the identification of certain redundant roles across the organization. The company has executed this process while strictly adhering to relevant labour laws. Additionally, the review necessitated adjustments to the organizational structure across various regions,” the company elaborated in its official statement.
The second round of layoffs will affect about 283 employees. Towards the end of the previous year, Twiga Foods had already undertaken a workforce reduction, resulting in 211 job cuts, equivalent to 21 per cent of its total workforce. This earlier restructuring initiative was aimed at phasing out the company’s in-house sales team.
Concurrently with the restructuring efforts, Twiga Foods implemented cost-saving measures, including the curtailment of travel allowances for employees, reduction of per diem expenses, and the transition of all trade development representatives into agent roles.
As part of its operational overhaul, the company initially devised ambitious plans to engage in farming and direct distribution of its own agricultural produce to traders. This initiative was to be carried out on its expansive 10,000-hectare land in Gulana Kulalu, through a newly established subsidiary, Twiga Fresh, launched in May of the preceding year.
However, in June of the current year, Twiga Foods made an announcement indicating the transfer of its rights for its Gulana Kulalu land to Selu Limited for the development of maize production.
“We primarily identify ourselves as an e-commerce entity, with agriculture serving as a secondary focus. This rationale underscores our decision to entrust Selu, a company with farming expertise, with the rights to the Galana-Kulalu Scheme,” Twiga Foods CEO Peter Njonjo told a local media house.