Twiga Foods Faces Second Round of Layoffs Amid Strategic Restructuring

Twiga Foods is undergoing significant changes as it navigates a challenging year marked by financial difficulties, legal disputes, and a shift in leadership. The company recently announced plans to lay off 59 employees as part of a broader restructuring effort aimed at enhancing operational efficiencies and steering the company towards profitability. This move follows a previous round of layoffs in August 2023, where 283 staff members were let go, highlighting the ongoing turbulence within the organization.

A Year of Challenges and Changes for Twiga Foods:

The year 2024 has proven to be particularly difficult for Twiga Foods, which has been at the forefront of digital food distribution in Africa. The company, which has raised over KES 25 billion in funding over the past decade, has struggled with cash flow issues, leading to delays in paying salaries and suppliers. These financial challenges came to a head earlier this year when Twiga became embroiled in a legal battle with Incentro, a Google cloud services reseller, over an unpaid bill of $261,000. The lawsuit not only exposed the startup’s financial struggles but also brought to light broader issues related to its ability to manage vendor relationships and maintain its workforce.

In March 2024, amidst these growing challenges, Twiga’s founder and CEO, Peter Njonjo, left his position following a successful $35 million fundraising round through convertible bonds. This development sparked rumors and speculation about the circumstances surrounding his departure, with some insiders suggesting that Njonjo may have been pushed out due to the company’s ongoing difficulties. Njonjo’s exit marked a significant turning point for Twiga, as he had been a key figure in its rise as a leading player in the African tech and agribusiness sectors.

New Leadership and Strategic Realignment

Following Njonjo’s departure, Charles Ballard, a former executive at Jumia, was appointed as Twiga’s new CEO in May 2024. Ballard’s arrival signaled the beginning of a new phase for the company, characterized by a strategic realignment focused on achieving profitability and long-term sustainability. Under Ballard’s leadership, Twiga has embarked on a series of restructuring initiatives aimed at streamlining operations and reinforcing its core business of digital food distribution, particularly in the fresh produce market.

“The delivery of these efficiency enhancements to the organization will regrettably impact 59 positions,” Twiga stated in a notice confirming the layoffs. “These changes are crucial as Twiga accelerates towards profitability and continues its mission of revolutionizing food distribution in Africa through innovative digital solutions.”

Despite the layoffs, Twiga is also creating 25 new positions within its growth and innovation departments. This move suggests a strategic shift towards areas that the company believes will drive future growth, including stronger partnerships with fast-moving consumer goods (FMCG) manufacturers, logistic efficiencies, and the development of enhanced tech solutions. Ballard expressed confidence in the company’s new direction, stating, “These adjustments will allow us to improve our service offering and lay a stronger foundation for sustainable growth in the years to come.”