Africa’s eCommerce giant Jumia is planning to cut about 10% of its 2,000-person workforce as it expands its use of AI tools while working toward profitability before the end of the year, according to a Bloomberg report.
The planned reduction, which could affect around 200 employees, is part of the company’s effort to automate more internal operations while lowering costs after years of heavy losses. Speaking to Bloomberg TV, Jumia CEO Francis Dufay said the company has already started adding AI-powered workflows across several parts of the business.
“We are able to automate across our business and increase revenue, lower operational and fixed-cost base,” Dufay said. “The coming two quarters, we are going to save on about 10% of headcount, mainly driven by AI, and it’s definitely going to increase.”
The move marks a major operational change for a company that historically relied on large teams to handle logistics, customer support, catalog management, and other manual processes across multiple African markets. According to Dufay, some of the work that previously required manual input is now being completed within weeks using AI-powered tools.
“It works just as well and is actually more scalable,” he said, describing the company’s growing reliance on AI tools as both a way to reduce costs and improve how the business operates as competition in African eCommerce continues to grow.
The restructuring comes at a time when Jumia’s financial performance is beginning to improve after years of accumulated losses that reached about $2.2 billion as of December 2025. In its latest quarter, revenue rose 39% year-on-year to $50.6 million, beating analyst expectations of $47.36 million, while gross merchandise value (GMV) climbed 31% to $211.2 million. Nigeria, the company’s biggest market, recorded a 42% increase in physical goods.
With revenue growing and costs gradually falling, the company appears to be betting that AI tools can help close the gap between expansion and finally becoming profitable. The latest cuts also continue a broader restructuring effort that has already reduced Jumia’s workforce by more than half from 4,318 employees at the end of 2022.
Across Africa’s tech ecosystem, more companies are increasingly turning to AI tools and leaner operations to preserve cash and improve margins. Payments company Flutterwave reportedly cut roughly half of its teams in Kenya and South Africa in mid-2025, while Sabi reduced about 20% of its workforce before shifting focus toward commodities trading.
According to Dufay, stronger revenue growth combined with lower operating costs could finally push Jumia toward sustainable profitability after years of cash burn. “This business has changed,” he said earlier this year. “It’s clear in the numbers that profitability is within reach.”
Still, while the restructuring may strengthen Jumia’s financial position, it also reflects the growing concerns surrounding AI adoption in the workplace. For many employees, the company’s latest move raises fresh questions about how automation could reshape jobs across Africa’s tech sector, especially as roughly 200 roles now face replacement in what becomes Jumia’s second major workforce reduction in recent years.
