Copia Global, a Kenyan e-commerce startup, is still operating despite laying off 1,060 employees last Thursday.
The new administrators, Makenzi Muthusi and Julius Ngonga from KPMG, took over on May 24. They informed employees in termination letters on Friday that their goal is to keep the business running and reduce operational costs while seeking new capital.
Muthusi explained that the company needs to be reshaped to seize new digital opportunities and achieve profitable growth. He emphasised that the layoffs, effective June 7, 2024, were not due to employees’ performance but were necessary given the current situation.
Copia assured employees they would be informed about potential job openings, showing the administrators’ commitment to reviving the company. However, attracting new investors might be challenging, especially after previous efforts to save the company failed in early May.
The layoffs follow Copia’s decision on June 4 to stop taking orders from Central and Eastern Kenya, indicating a rollback in operations to address cash flow issues.
Founded in 2013 by Tracey Turner and Jonathan Lewis, Copia aimed to help retailers in rural and peri-urban areas restock essential goods via USSD or a mobile app. Despite raising $123 million in venture capital, the company has struggled to become profitable, joining a list of startups facing similar challenges.
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