Last year, Twiga Foods laid off 283 employees or 33% of its total headcount of 850. Admittedly, the company faced challenges following an onslaught from traditional brokers connecting retailers to food producers from rural Kenya.
Today, Twiga has laid off 59 more employees, citing the need to improve its profitability. It has been a difficult journey, and Twiga hopes to turn things around soon. While these employees will be let go, the company has also created 25 new positions. This is clearly a cost-cutting measure; only time will tell its long-term impact.
Last November, the startup raised USD 35 million. This substantial amount was intended to help offset some of its debts to business partners, including its Google Cloud services provider, Incentro Africa (which resells Google products in the African market).
Let’s also remember that Twiga’s leadership team has experienced some changes. Last year, its co-founder and CEO at the time, Peter Njonjo, left his role as CEO and later resigned from the board. However, he remains involved with the company, having invested $1 million to help it recover.
“I would like to express my sincere gratitude to all affected staff members for their contributions to the strategic realignment initiated last year and to Twiga’s ongoing success. These adjustments will enable us to enhance our service offerings and build a stronger foundation for sustainable growth in the years to come,” said Charles Ballard, CEO of Twiga Foods, who joined the company in April 2024. “To our new team members, welcome to Twiga!”