- E-commerce company Copia has said in a notice to employees that it will cease operations in Eldoret and five other towns.
- The company, which has been placed into administration, said employees in towns on the list will be placed on furlough until further notice.
- Copia has warned that the current restructuring process could result in the closure of operations and the loss of more than 1,000 jobs.
Japhet Ruto, a journalist at TUKO.co.ke, has over eight years of experience in finance, business and technology reporting, providing deep insights into economic trends in Kenya and globally.
E-commerce company Copia has been placed under bankruptcy trusteeship and has ceased operations in six towns.
Source: Facebook
In which towns will Copia cease operations?
In a notice to employees, the troubled company said it would suspend orders in Meru, Embu, Kericho, Eldoret, Machakos and Naivasha from May 29.
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Copia said town employees on the list will be placed on furlough until further notice.
“As part of this process, we have decided to stop taking orders as of May 29. Employees working in our warehouses covering these regions will be asked to go on furlough shortly and await further instructions,” human resources director Anne Mwihaki said.
Mwihaki explained that the administrators would continue to work with management to raise capital from new investors for the Kenyan operations.
“We regret that we must cease servicing these locations at this time as we change the size and format of our operations. We look forward to returning to these areas in the future,” she added.
How many employees will Copia lay off?
More than 1,000 Kenyans will lose their jobs after Copia Kenya announced job cuts.
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The e-commerce start-up warned that the ongoing restructuring process could force it into business closures.
In a notice dated the 16th, the company said it was taking all steps to secure additional funding but that the risk of downsizing or even ceasing operations altogether remained.
Why is Copia Kenya reducing its workforce?
The company noted that the challenging economic environment and financial constraints had led to increased operating costs.
Copia said it took the step after learning that payment of employees' salaries and wages may be in jeopardy.
The company has raised 5.6 billion Kenyan shillings from investors to expand across East Africa in 2022.
Source: TUKO.co.ke
