Just yesterday, Andela laid off 135 staff across 4 of its locations, and the company’s CEO, Jeremy Johnson has come out to reveal why the decision was taken. According to him, the layoffs were difficult but necessary to make sure Andela copes during the pandemic and remain a viable business when this is all over.
According to TechCabal, Jeremy Johnson believes that the company had to make sure its growth plans are secured to help it remain attractive to investors while he reinvests in the tools of its operations. He added that since the outbreak will most likely affect 50% of their clients and result in a scarcity of customers, cutting operation costs had to happen.
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His words, “Like any venture backed startup, our ability to attract future investment is determined by the ratio of how quickly we grow in comparison to how much we spend to achieve that growth.”
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