Twiga Foods, an e-commerce food distribution company, is undergoing operational restructuring due to challenging market conditions, resulting in the layoff of around one-third of its 850 permanent employees. The CEO, Peter Njonjo, clarified that the layoffs are part of a planned transformation to create a lean, cost-efficient organization that can navigate tough economic times. The restructuring involved a review of the operating model and costs to align with the current business environment.

Njonjo refuted rumors about the closure of Twiga's operations in Uganda, emphasizing that the company remains operational there. The layoffs will affect employees across all markets, with around 283 employees expected to be made redundant. These employees will receive severance packages in accordance with labor laws.

Earlier this year, Twiga adjusted its commercial model by replacing its internal sales team with independent contractors based on performance. This move indicates the company's efforts to cut costs amid economic challenges. Twiga will continue to operate its Twiga Fresh vertical, which focuses on food farming and distribution, despite the operational changes. The company's focus is on delivering affordable goods and services to customers while adapting to the current business environment.

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