Summary:

• Nigerian B2B e-commerce startup Alerzo is laying off 15% or 400 of its full-time employees in a second round of job cuts in seven months.
• The first round of layoffs, affecting 5% or 50 employees, was based on performance and digitisation of some roles, while the second round was aimed at achieving profitability.
• Despite receiving $10.5 million in funding in 2021 and growing its business by more than two times in 2022, Alerzo admits to having grown its headcount too fast and being affected by the tightening economy.

Nigerian B2B e-commerce startup Alerzo has confirmed that it is laying off 15% of its fulltime employees in a second round of layoffs within seven months of each other.

The company confirmed the news to media outlet TechCrunch, explaining that this second round of layoff was more for profitability. Its first round, which saw it let go of 5% or 50 employees, was based on performance and digitising some roles.

Alerzo could be left with just 800 fulltime employees after the latest round of job cuts but the leadership believe that they can still achieve their nationwide expansion goal which they started in late 2021.

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Alerzo provides a platform for informal retailers to purchase goods from Fast Moving Consumer Commodities suppliers and get it delivered to their shops.

Despite securing a funding of $10.5 million in 2021, growing its business by more than two times in 2022, the startup is also feeling the impact of the tightening economy and admits that it had grown its headcount too fast.

“Given previous market dynamics, we hired very aggressively during the past couple of years to fuel quick growth and expansion across the country.

“This does not align now with the economic environment today, so we, unfortunately, had to make changes to our business to be more focused around pursuing strong unit economics.

“Despite these challenges, we remain committed to our mission and are confident that this restructuring will enable us to better serve our customers and pursue sustainable growth. We are grateful for the hard work and dedication of all of these employees,” it said in a statement.

Alerzo agreed to pay a severance of one month to affected employees and keep covering their HMO (and that of their family members) until the end of 2023, and give job counseling services while providing job placements.

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