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Twiga confirms it laid off its sales team in 2022 as it adjusts its commercial model
The article discusses how Twiga Foods, a B2B platform connecting farmers and food vendors, has made changes to its sales model, resulting in the elimination of its internal sales team. In October 2022, the company implemented cost-cutting measures that included laying off 211 employees. The CEO, Peter Njonjo, clarified that no further layoffs have occurred since then. However, Twiga now operates with independent agents instead of full-time salespeople.
Njonjo explained that the company wanted to convert the salesperson role from an employee position to that of a "free agent." Twiga terminated the position of Trade Development Representative, which affected 211 individuals. The company stated that it followed all legal requirements in terms of severance payments. Njonjo mentioned that other companies in Kenya have also made similar workforce changes.
Under the new sales model, Twiga works with independent agents who are evaluated based on performance. Suboptimal sales territories are reviewed, and the number of agents is adjusted accordingly. While the exact number of affected agents was not disclosed, Twiga indicated that there is a waiting list of 2,000 people who can be onboarded as sales agents.
The company assesses the agents' performance monthly, and if they fail to meet expectations, they are replaced by new applicants. Twiga does not restrict agents from working with other companies but sets goals that must be met. The company has faced criticism for the layoffs resulting from this model, but it clarifies that no permanent employees have been laid off.
Twiga recently transferred its rights at the Galana-Kulalu Scheme to Selu Limited, a specialized entity for investing in an irrigation project. The company aims to develop 20,000 acres of land for maize production using innovative and sustainable farming methods.
In 2021, Twiga Foods secured $50 million in funding to support its expansion efforts in East and West Africa, raised by existing investors such as the International Finance Corporation, TLcom Capital, Creadev, Juven, and DOB Equity.
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