eCommerce giant reportedly fires 60% of staff, closes warehouse

folarin okunola

November 2, 2015 4:28 PM

The move seems to be one that is aimed at reducing the company’s costs to the barest minimum, which is not a particularly bad thing.

DealDey office in Ikoyi

The past few weeks hasn’t been exactly rosy for the Nigerian tech space in general, Jumia first let off about 30% of its staff, before iROKOtv followed suit, letting go of about 130 staff in moves that has raised serious concerns about the state of the startup space in Nigeria.

It doesn’t seem to be over either, according to a Techmoran report, DealDey is reportedly dropping 60% of its workforce, with the majority of the affected staff said to be taken from the departments of operations, sales and logistics.

READ: What does Jumia's potential collapse mean for e-commerce in Nigeria?

The report further reveals that the eCommerce company is also closing its warehouse, sign that the company may be looking to take its business model in another direction, a precedent which seemingly began with its spin-offs Lyf and Promohub.

All in all, the move seems to be one that is aimed at reducing the company’s costs to the barest minimum, which is not a particularly bad thing if you look at it from a business perspective.

DealDey raised $5 million from AB Kinnevik some months ago to “ramp up its technology and expand into other cities.”

folarin okunola