Jumia trims workforce to 2,000 as it accelerates AI-driven operations

Jumia, Africa’s leading e-commerce platform, now operates with just over 2,000 employees following extensive layoffs aimed at integrating artificial intelligence (AI) across its operations. The company says this strategic shift will reduce costs and improve productivity after a series of significant operating losses.

According to Jumia’s third-quarter 2025 financial statements, its headcount declined by 7% as of December 31, 2024, and by September 30, 2025, only 2,010 employees remained on payroll. The company attributes this reduction to its focus on using AI to streamline customer service, marketing, and technology functions.

Jumia’s financial turnaround has been notable. It reported a $45.6 million revenue in the third quarter of 2025 compared to $36.4 million a year ago, and is on track to achieve breakeven in the fourth quarter of 2026 and deliver full-year profitability in 2027.

The restructuring traces back to Jumia’s first major layoff in Q4 2022, when over 900 employees—about 20% of its workforce—were let go. That single event accounted for 900 out of 3,160 tech jobs lost across Africa by October 2024. Jumia later shut down its food delivery arm, Jumia Food, in December 2023, followed by additional job cuts in Kenya and other African markets in early 2024.

These measures have led to improved financial performance, though the company’s stock remains at early 2022 levels. Before the layoffs in January 2022, Jumia’s shares traded around $10.29, dropping to $3.40 by December 2022 and hitting a low of $2.31 in October 2023. The stock rebounded sharply in mid-2024—reaching $13.07 in July—after investors endorsed its cost-cutting and profitability strategy. As of November 2025, Jumia’s share price hovers around $10.56.

Support from Axian Telecom has strengthened Jumia’s position as it expands partnerships with Chinese e-commerce sellers targeting African markets. The company is also opening new warehouses in Nigeria, Morocco, Egypt, and Côte d’Ivoire to meet rising demand in categories such as fashion, personal care, and electronics.

Nigeria remains Jumia’s strongest market, posting a 30% year-on-year increase in orders and a 43% rise in gross merchandise value (GMV) in the third quarter of 2025. Jumia CEO Temidayo Ojo reaffirmed that the company’s priority is scaling growth across the continent rather than further cuts.

Jumia’s workforce cuts mirror a broader global trend among tech and retail giants. Amazon has implemented multiple rounds of layoffs across its communications and devices divisions, including Alexa and Echo. In May 2025, Walmart announced plans to cut 1,500 jobs in its global technology, e-commerce, and advertising units, while eBay reduced its Israel-based workforce as part of a restructuring effort.