Jumia Technologies, Africa's e-commerce giant, plans to cut 10% of its approximately 2,000-strong workforce as it implements artificial intelligence across its operations, according to CEO Francis Dufay. The announcement marks a significant restructuring for the company as it adopts AI technology throughout its departments. The job reductions will affect around 200 employees initially.

Jumia Technologies reported a 39% year-over-year revenue increase to $50.6 million, beating estimates, despite geopolitical volatility in the Middle East. CEO Francis Dufay told Investing.com the results demonstrate operational consistency as the African e-commerce platform maintains its target to reach adjusted EBITDA breakeven by year-end. Quarterly cash burn rose to $15.3 million from $4.7 million, though this represents improvement from the prior year's $23.2 million decrease. Dufay attributed the increase to seasonal factors including technology and insurance contract renewals. The company faces pressure from elevated fuel prices, particularly in Nigeria where costs have spiked nearly 50%, and supply chain constraints that have pushed smartphone prices up 20%. Jumia is responding by expanding its pickup station network, which now handles 74% of orders, and diversifying suppliers whilst maintaining affordable device options.

Jumia, Africa's e-commerce company, is maintaining its strategy of sourcing inventory from Chinese vendors as it targets profitability by the end of next year, CEO Francis Dufay told Semafor. The company reported 87% year-on-year growth in items sold by international sellers, particularly from China and Turkey, in the first quarter. Jumia began importing from Chinese vendors two years ago to address Africa's shortage of large-scale suppliers and counter competition from Chinese retailers like Temu and Shein. Temu entered Nigeria in late 2024 and quickly became the country's most downloaded app. First-quarter revenue rose 39% year-on-year to $50.6 million, with order volumes and values increasing over 30%. The company expects positive cash flow by the fourth quarter, despite rising operational costs from higher fuel prices linked to the Iran war.