Copia Kenya Limited, a prominent player in Kenya’s e-commerce landscape, faces dire financial challenges, prompting discussions about potential organizational restructuring or even the cessation of operations, according to a notice issued to employees and seen by The Sharp Daily.
The notice, in accordance with Section 40 (1) (b) of the Employment Act, 2007, highlights the company’s ongoing struggle with financial constraints despite efforts to secure additional funding.
Tim Steel, Chief Executive Officer of Copia Kenya Limited, expressed the gravity of the situation, stating, “We find ourselves in a position where we must consider a far-reaching organizational restructuring to ensure the sustainability of our operations or even a possible shutting down of operations.”
Copia’s predicament, outlined in the notice, underscores the uncertain road ahead for the company and its employees. The prospect of workforce reduction looms large, with a potential impact on salary payments. Steel emphasized, “It is very likely that there will be a reduction in our workforce and it is possible that the payment of salaries could be at risk.”
According to the notice, Copia is obligated by law to provide employees with a one-month notice of potential redundancies and to engage in a one-month consultancy period with affected staff. The company intends to fulfill these legal requirements diligently, including notifying the Labour Officer as mandated.
Should Copia proceed with restructuring, approximately 1,060 roles could face elimination, leading to potential terminations on grounds of redundancy. The notice cautioned employees that the risk of termination would apply to them only if their roles are impacted. However, in the event of a complete shutdown of operations, all staff would be at risk of termination.
Despite the challenges faced by Copia Kenya Limited, it’s worth noting the company’s significant achievements. Copia Global, the parent company of Copia Kenya Limited, has raised over $100 million in venture funding across seven funding rounds. Founded in 2013 by Tracey Turner and Jonathan Lewis, Copia relies on a vast network of 50,000 street shops in small towns and semi-rural areas in Kenya for order collection and delivery.
The notice reassured employees that the company will uphold its statutory obligations during the consultation and selection process. Employees were encouraged to reach out to Human Resources for any queries regarding the notice.
