Twiga Foods which has been through a roller coaster in recent months is laying off workers again. According to the Agri-tech startup, 59 employees are set to be laid off in a move to enhance “operational efficiencies”. This hair cut is part of the major shift in strategy by the new CEO Charles Ballard, who joined the company in May.
“The delivery of these efficiency enhancements to the organization will regrettably impact 59 positions,” the company wrote in a notice. “These changes are crucial as Twiga accelerates towards profitability and continues its mission of revolutionizing food distribution in Africa through innovative digital solutions,”
This is not the first time Twiga Foods has sent employees packing. In 2022, the company’s layoff affected 21 percent of its then staff, which was about 210 employees. Despite having raised over KES 25 billion in 10 years, Twiga has had trouble paying salaries and suppliers.
Last year, it was embroiled in a court battle with Incentro, a google cloud services reseller, over unpaid dues. The lawsuit momentarily saw the company face the threat of liquidation.
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With the new CEO beginning to implement his strategy, the start up promises to focus on a “path to profitability”. This strategy will mean Twiga Foods focuses on key areas such as stronger partnerships with FMCG manufacturers, logistic efficiencies and an enhanced Tech solution.
“These adjustments will allow us to improve our service offering and lay a stronger foundation for sustainable growth in the years to come,” said Charles Ballard, CEO of Twiga Foods.
Twiga is doubling down on its core business of digital food distribution, particularly focusing on fresh produce for the general trade market. Interestingly, even as others lose their jobs, Twiga is seeking to fill 25 new positions to support its new strategic growth and development initiatives.
