Jumia reaches lowest losses in four years under new management

by Digital Brainiacs
0 comment 1 minutes read

Q1 2023 marks the first quarter Jumia’s new management implemented its strategy after riding out the blueprint of previous management in Q4 2022. The result? Jumia saw its losses decrease significantly: adjusted EBITDA loss dropped 51% year-over-year to $27 million, on track to meet the company’s end-of-year target of $100-120 million in adjusted losses. Similarly, operating loss was down 54% from Q1 2022 to $30.9 million per the company’s just-released financials

The streamlining efforts of Q4 2022, where Jumia reduced its headcount by 20% affecting 900 roles across its 11 markets, were instrumental in reducing losses. However, the General and Administrative expenses for Q1 2023, which dropped by 32%, do not yet reflect the full impact of the headcount cuts of Q4 2022, as Q1 2023 still included the last months’ salaries of some of the leavers, the company reported. Jumia CEO Francis Dufay told TechCrunch that more layoffs could come as the e-commerce giant expects to reduce G&A costs…

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