Naspers-backed OLX is trimming its headcount in Nigeria and Kenya as it moves to turn profitable this year.
Speaking to TechMoran, Peter Ndiangui, OLX Kenya country manager said, “We made a difficult but important decision in Kenya and Nigeria to consolidate our operations between some of our offices internationally.
“Our marketplace will continue to operate in Kenya and Nigeria – uninterrupted – as it has since 2010. We remain committed to the millions of Kenyans who use our platform to buy and sell every month. We continue to be focused on constantly innovating to make sure that OLX remains the top classifieds platform Kenya.”
The OLX Kenya platform will run but will be operated by 3 hubs internationally which will impact the Kenyan staff. These changes are specific to Kenya and Nigeria.
“This is a business decision, carefully thought to enable us to continue to provide the best services to our customers in the country. This is entirely a business decision carefully thought to enable us to continue to provide the best services to our customers in the country,” said Ndiangui.
OLX wants its customers to know the marketplace will continue to operate in Kenya and Nigeria – uninterrupted – as it has since 2010, and there will be no changes to its customers, who will continue to have the best service available.
By being remotely run, OLX hasn’t confirmed how the affected employees in the various departments will be helped to ensure a smooth transition from their jobs. OLX’s top leadership is highly likely to be retained and to join the firm’s new hub in Johannesburg. There is a likelihood that the firm will be reducing its investments in customer acquisition and awareness.
Recently Jumia Rwanda announced a shift to a fully B2C marketplace after the online e-store platform proved to be costly to run. Nigeria’s classifieds platform Efiritin shut operations too sometime last year.