Kenyan e-commerce platform Copia has laid off 25% of its workforce, or 350 employees, in an effort to enhance profitability. The company cited high labor costs as the reason for the layoffs.
Copia is a mobile-based e-commerce platform that targets low-income households in Kenya. The company was founded in 2013 and has raised over $50 million in funding.
The layoffs are the third time this year that Copia has reduced its workforce. In January, the company laid off 50 employees, and in April, it closed its operations in Uganda, which affected 300 employees.
In a statement to TechCabal, Copia said that the layoffs were necessary to “ensure that during these economically challenging times, we will continue to focus our resources on the critical levers of business success and remain a lean and sustainable business for the long-term.”
The affected employees will receive a severance package and other benefits.
The layoffs come at a time when the e-commerce industry in Kenya is facing challenges. The industry is growing rapidly, but competition is fierce. In addition, the Kenyan economy is facing headwinds, which is putting pressure on businesses.
Despite the challenges, Copia remains optimistic about the future. The company said that it is “committed to providing our customers with the best possible shopping experience.”