Twiga Foods, an e-commerce platform specializing in food distribution is set to lay off approximately one-third of its permanent workforce, totalling 283 employees out of their existing 850, new reports indicate.

According to reports by TechCabal, the firm is currently in the process of implementing operational changes due to challenging market conditions.

“CEO Peter Njonjo shared with TechCabal that the company has been actively pursuing a path of transformation over the past few months, aiming to establish a streamlined, adaptable, and cost-effective organizational framework to navigate the prevailing economic challenges. This strategic shift prompted a comprehensive review of Twiga’s operational structure and expenses, all aimed at ensuring that the company’s internal setup is optimized for its intended purpose,” TechCabal reported.

Mr Njonjo also affirmed that the company’s operations in Uganda are still ongoing, terming rumours of closure “unfounded”.

He also noted that Twiga farms are operational.

“It is important to note, however, that the impact of the layoffs will extend across all the markets Twiga operates in. The laid-off employees will be provided with compensation in adherence to relevant labour regulations.”

Mr Njonjo emphasized Twiga’s commitment to offering severance packages that comply with applicable labour laws.

It is worth noting that Twiga will continue to operate Twiga Fresh, a segment dedicated to food cultivation and distribution.

Launched in May 2022, Twiga Fresh operates a farm spanning 650 hectares in Taita Taveta, where it cultivates produce such as onions, tomatoes, and watermelons.

The establishment of Twiga Fresh was facilitated by a $10 million investment.

Addressing concerns about rebuilding trust and confidence among both investors and customers, Mr Njonjo conveyed that Twiga’s investors are fully supportive of the ongoing transformation.

He emphasized that the primary objective remains to ensure the sustained availability of affordable quality products and services to customers in the foreseeable future.