Jumia Technologies AG plans to cut about 10% of its roughly 2,000-person workforce over the next two quarters as it rolls out artificial intelligence across operations, logistics, finance and marketing, Chief Executive Officer Francis Dufay said.
The move reflects a broader push to automate manual tasks, lower fixed costs and improve margins at the Africa-focused e-commerce platform, which is targeting profitability by year-end.
AI Drives Cost Reset
Dufay said many processes that were handled manually just months ago are now being automated with AI tools that can be developed in a matter of weeks. He said the new systems are “more scalable” and support faster revenue growth while reducing headcount and operating costs.
Since taking over in early 2023, Dufay has relocated offices and senior executives from Dubai to Africa, shut non-core businesses including food delivery and exited three markets.
Growth Versus Pressure
Jumia is still posting top-line growth of more than 30% a quarter, even as its stock has fallen 38% this year in New York. The company is also contending with supply-chain disruptions and higher fuel costs linked to the Iran war, which has pushed up chip prices and lifted smartphone costs by about 20% at the low end.
Still, consumer demand remains firm, with Nigeria growing more than 40%, Dufay said. Jumia sells largely to customers earning about $200 to $300 a month, making cost discipline central to the business model.
Efficiency Becomes Strategy
The company’s AI shift underscores how African tech firms are beginning to use automation not just for growth, but for survival. In markets where margins are thin and consumers are price-sensitive, the ability to run lean may matter more than scale alone.
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