Nigerian eCommerce titan, Konga has apparently fired over 60% of its employees, in what appears to be a move to drastically minimize operational expenses.
As mentioned by Quartz, "CEO Shola Adekoya notified staff of the cuts last week November 30 and said the firm will use a leaner business model". There are also opinions that founding ex-CEO Sim Shagaya may be coming back to his role, from which he signed off almost 2 years ago.
While there is no formal confirmation concerning the massive cutback, Shola Adekoya mentioned an "internal restructuring" in a new Medium post where he also came to announce another significant decision; Konga is changing to a prepay-only model, practically suspending Pay on Delivery (PoD).
" Over the last few years," said Shola, "we have studied several options for payment and e-commerce in Nigeria and concluded that prepay is a vital method for our business and the market."
He penned down the move to the "cost of inflation as well as increasing difficulties of managing payment-on-delivery, in addition to the resulting amount of order cancellations on the website".
Konga is definitely not the first major eCommerce website in Nigeria to try to kill the beast that is PoD. Coming after the tragic killing of a Jumia delivery guy in Port Harcourt, Payporte drew first blood around April, by putting on hold PoD almost 2 calendar years behind. Soon enough, Jumia itself did the same, although with a limited implementation.