Tough Times: Twiga Foods Fires Hundreds Of Workers After Receiving KSh 300m Hustler Fund

• Twiga Foods announced a fresh round of employee layoffs as it sought to cut its operational costs
• The e-commerce food distribution firm said the tough economic environment affects people's purchasing power
• The company said it continues to adjust and restructure its models of operations for improved service delivery

Twiga Foods has announced further job cuts, citing a tough economic environment affecting purchasing power.

The e-commerce and food distribution start-up's fresh round of employee layoff came one month after the company fired over 100 sales agents due to poor performance.

We regrettably declare some roles redundant across the organisation in full compliance with applicable labour laws. The review has further necessitated the resizing of its operating model across its regions," said Twiga Foods in a statement released on Saturday, August 19..

Twiga Foods fires more workers

The B2B technology firm said the fresh job cut is part of the restructuring model to enhance service delivery.

"The business has undertaken strategic operating adjustments to enhance its service delivery capacity over the past few months. This has been influenced by the current business environment, where people’s purchasing power continues to decline," it added.

In May 2023, Twiga Foods sacked over 130 employees as it sought a transformative path to become a lean, agile, cost-efficient organization.

This is despite having received KSh 300 million from the government's Hustler Fund project to sustain its operations.

"We are undertaking several interventions to adopt and sustain the business during these economic times. The company has reviewed its operating model and costs to ensure its organisation structure is fit for purpose," the statement continued in part.

Twiga Foods shifts to sales-agent model

In November 2022, the company sacked 211 workers, representing 21% of its workforce, in a restructuring model aimed at cutting costs.

Twiga Foods CEO and founder Peter Njonjo said the model would ensure entrepreneurial skills among its agents, developing self-employment in the country.

"We have over 400 people as agents, yet we laid off only 211 salespersons. Out of the 400, we gave priority to the 211, and they are the ones transitioning," said Njonjo during the media tour at the warehouse on Wednesday, November 23.

Njonjo revealed that the firm employs over 3,000 people directly.

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Twiga Foods said the low economic environment has disrupted the purchasing power.

Tough Times: Twiga Foods Fires Hundreds of Workers after Receiving KSh 300m Hustler Fund - Tuko

Tough Times: Twiga Foods Fires Hundreds of Workers after Receiving KSh 300m Hustler Fund - Tuko