After investing Sh1.6 billion to expand its business, the agri-tech company Twiga Foods is now reducing its personnel in ways that would cause those who remain to forfeit some of the perks they have been receiving.
The business, which previously stated it had 1,000 employees, now claims that all of its trade development representatives have been converted to agents as it transitions its sales team’s operations to an agency model. Out of the more than 1,000 employees, 21% have now been laid off.
The business had stopped working with foreign nationals who were providing various services across multiple departments in October.
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In addition, Twiga has reduced the staff per diem for the remaining employees from a high of Sh4,000 to Sh1,000, with lodging being offered on a bed and breakfast basis.
“As a result of this transition to the agent model, your employment with Twiga will terminate on November 30, 2022,” reads a communication to the staff. “We invite you to transition into a new relationship with Twiga as an agent effective November 1, 2022”
In order to give them time to look for alternative engagements, the company stated people who decline appointment as agents won’t be obliged to work as trade development representatives during the one-month notice period.
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The company has also restricted travel reimbursements to those employees whose jobs require them to travel for more than 75% of the month.
“The travel allowance will include all costs related to the movement of the employee in her/his personal vehicle to attend to the business of the company. Executives will identify employees in their team, whose jobs fit the criteria for a travel allowance,” said the firm.
Twiga Foods Twiga Foods
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh