Kenyan logistics company, Sendy, has laid off more of its staff months after it had laid off 10% of its workforce, this was made known when the company revealed its decision to fully focus on fulfilment services and closed down its supply service.
Reporters also made that confirmation as the numbers it 270 staff was reduced by 10%. The recent event is an effect of macroeconomic headwinds. Also, Sendy has the intention to change operations to serve businesses only, there is also a target of $100 million Sendy has its eyes on for the year.
While speaking about the layoff, Meshack Alloys, Sendy’s CEO, noted that Sendy was lagging behind when comparing the predictions the company made in the previous year, this has called for a few changes for it to “If we look at metrics, we’re headed in the right direction, especially our contribution margins, gross profits, take rates and EBIDTA,”
he further went on to say, “However, the gap between where we are today and where we’re supposed to be is still huge. To put that into context, if you look at the last three months from a GMV perspective, we’re only 65% of where we need to be. And from a revenue perspective about 44%. So the gap is quite huge. And we need to do something about it, given the tough economic conditions we’re seeing.”
While Alloy was pointing out some of the reasons for reducing its supply services and increasing that of its fulfilment services, he revealed that fulfilment has become the major product line since it had a bigger consumer and market.
Alloys finally said “With the growing uptake of digital commerce and recognizing the opportunities it presents for businesses, we are doubling down on fulfilment to support online merchants with the necessary tools to sell and fulfil directly through digital platforms,” he said. “We understand the potential of digital commerce, therefore Sendy will now sharpen its focus and invest resources in building fulfilment and transport services for businesses.”