African eCommerce giant Jumia cut its workforce by 7% between December 31, 2024, and September 30, 2025, despite year-on-year revenue growth.
In its Q3 2025 financial results, Jumia posted $45.6 million in revenue, a 25% year-over-year increase from $36.4 million in Q3 2024.
While the company still recorded an operating loss of $17.4 million, a 13% decline from $20.1 million in 2024, the revenue increase reflects its commitment to attaining full profitability by 2027.
The company’s revenue growth was driven by a surge in customer demand and a rise in the number of orders. Orders grew by 34% with Nigeria leading the markets with a 30% increase and 43% growth in Gross Merchandise Value (GMV).
Jumia’s CEO, Francis Dufay, affirms that the company has reached a turning point on its path to sustainable profitability, driven by continued operational discipline and its 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. We believe that we are on track to reach breakeven on a Loss before Income tax basis in Q4 2026 and achieve full-year profitability in 2027, positioning Jumia for long-term growth and value creation,” Dufay says in a statement.
The company made significant investments in customer acquisition and engagement via sales and advertising. Advertising costs increased by 18% to $5.2 million.
However, in keeping with its dedication to discipline, general and administrative expenses declined by 7% to $17.6 million. This was underpinned by lower taxes. It also recorded higher staff costs and professional fees, partly due to currency translation effects.
Despite this slight increase, the company’s staff headcount decreased by 7% to 2,010. The drop in employees follows Jumia’s rising adoption of Artificial Intelligence (AI) tools in its operations to enhance productivity and reduce operating expenses.
“AI-driven workflows in customer service, marketing, and technology operations are improving efficiency, streamlining processes, and supporting a leaner cost structure. These initiatives are contributing to ongoing reductions in total operating expenses and improved scalability.”
Companies worldwide are exploring ways to reduce operational costs, and as AI development continues to grow, reducing staff overhead with AI is becoming more commonplace.
Owing to its initiatives to streamline operations, Jumai expects general and administrative expenses to continue to decline and to be a significant driver of its profitability push.
