Jumia Cuts Workforce by 7 Percent as AI Adoption Accelerates Efficiency Push
Jumia reduced its workforce by 7 percent between December 31 2024 and September 30 2025, even as the African eCommerce company reported strong year on year revenue growth. The update was disclosed in the company’s Q3 2025 financial results.
Jumia posted 45.6 million dollars in revenue for the quarter, a 25 percent increase from 36.4 million dollars in Q3 2024. Although the company still recorded an operating loss of 17.4 million dollars, this represents a 13 percent improvement from the 20.1 million dollars loss recorded in the same period last year. The company maintains that it remains on course to reach full profitability by 2027.
Revenue growth was driven by stronger consumer demand and a significant rise in order volumes. Total orders increased by 34 percent, led by Nigeria which recorded a 30 percent increase in orders and a 43 percent rise in Gross Merchandise Value. Chief executive Francis Dufay said the performance signals a turning point in Jumia’s path to sustainable profitability, which he attributed to tighter operational discipline and a clearer value proposition.
“We continue to strengthen our cost structure and sharpen operational discipline, reinforcing our path toward profitability. Our focus remains on execution and customer engagement as we build a more efficient business,” Dufay said. He added that the company expects to reach breakeven on a Loss before Income Tax basis in Q4 2026 and achieve full year profitability in 2027.
Jumia has increased investments in customer acquisition and engagement, reflected in an 18 percent rise in advertising spending to 5.2 million dollars. At the same time, general and administrative expenses fell by 7 percent to 17.6 million dollars, supported by lower taxes. The company also recorded higher staff costs and professional fees, partly linked to currency translation effects.
Despite these increases, overall staff headcount declined to 2,010 employees. The reduction is driven by Jumia’s expanding use of Artificial Intelligence tools across its operations. The company says AI enabled workflows in customer service, marketing, and technology are improving efficiency, streamlining processes, and supporting a leaner cost structure. These initiatives are contributing to lower operating expenses and strengthening scalability.
With companies worldwide seeking new ways to reduce operational costs, Jumia says it anticipates further declines in general and administrative expenses as its efficiency measures take hold. The company views these reductions as a key driver of its long term profitability ambitions.
