Jumia is cutting again, and this time, it says it is the last round before the numbers finally turn positive.

Jumia Technologies has confirmed plans to cut at least 200 full-time jobs over the next two quarters as the African e-commerce company pushes to reduce costs, improve efficiency, and achieve profitability by late 2026, according to its Q1 2026 financial report released on Thursday. The company's total workforce has already fallen 8% since December 2024 to approximately 1,980 employees as of March 2026, compared with 4,318 employees at the end of 2022.

The layoffs are AI-driven by design. "We are actively working to further reduce headcount, continue process automation, and leverage AI tools," the company said, adding that AI-driven automation across operations, finance, cybersecurity, and technology teams enabled headcount reduction while contributing to improved operational leverage in Q1 2026. AI is also helping solve problems on the ground, improving logistics routing, enabling faster customer service resolution with fewer agents, and streamlining seller onboarding and compliance monitoring.

The underlying business, meanwhile, is moving in the right direction at pace. Revenue rose 39% year-on-year to $50.6 million in Q1 2026, while Gross Merchandise Value grew 31% to $211.2 million. Gross profit climbed 48% to $29.4 million, and the Adjusted EBITDA loss narrowed 32% to $10.7 million compared to $15.7 million in Q1 2025. Nigeria was the standout performer, with physical goods GMV up 42% year-on-year, while Egypt confirmed its recovery with physical goods GMV rising 56% excluding corporate sales.

Jumia ended the quarter with $62.6 million in liquidity after using $12.5 million in operating cash, a cash burn that has narrowed significantly from $23.2 million in Q1 2025.

External headwinds loom, however. The war in the Middle East has led to logistics and supply chain disruptions and rising fuel costs. Jumia said it saw limited impact in Q1 2026 but expects greater pressure in Q2 2026 if conditions persist, and exposure being partially mitigated by increased reliance on pick-up stations over fuel-intensive last-mile delivery.

Jumia reaffirmed its target of reaching adjusted EBITDA breakeven and positive cash flow in Q4 2026, with full-year profitability expected in 2027.

For a company whose CEO once admitted it was "as good as dead" when he took over in late 2022, the trajectory is remarkable. But with just $62.6 million in liquidity and 200 more jobs on the line, there is no margin for error between here and the finish line.

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