More than 1,000 employees at Copia Kenya have been served with termination letters on Friday, after a town hall meeting held yesterday, Thursday, June 6. The cash-strapped company cites the constraints of the capital market and the need to reduce operation costs until it is able to raise capital from new investors.
The termination letters come less than a month after the e-commerce firm announced a possible closure over a financial crisis. In late May, Copia Kenya was placed into administration as a step towards preserving and salvaging the business.
In a sample termination letter seen by BRK, Copia Kenya has promised the terminated staff their terminal benefits in line with Kenyan laws under the Insolvency Act of 2015. Further, the company has promised to “communicate with staff regarding employment opportunities in the continuing business.”
What lies ahead for the once vibrant business is currently unpredictable, after it also shut down business in at least four towns in Kenya earlier this week, with May salaries also being delayed.
