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Digital lender Tala has downsized its customer operations team, releasing 28 employees due to a significant rise in customers independently managing their loan repayments.
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The company attributed the layoffs to a 95% surge in self-service loan repayment by users, which has reduced the workload in that department.
“These employees represent less than 3% of Tala’s total workforce,” the company noted in a statement. “We are reallocating resources to focus on expanding into new markets and enhancing our products. We understand this transition affects our team members and are committed to supporting them respectfully through the process.”
A letter from Inventure Mobile Ltd. (Tala’s local entity), addressed to the Ministry of Labour and Social Protection, revealed plans to lay off up to 55 employees due to declining demand for customer service roles, making several positions redundant.
The roles affected include 23 customer recoveries advocates, 8 senior recoveries advocates, 1 process analyst, and 10 customer care advocates, among others.
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“In accordance with Section 40 of the Employment Act, 2007, we formally notify you of our proposal to declare the roles listed in the attached schedule redundant,” said Tala Kenya’s General Manager, Annstella Mumbi, in the letter.
She added that the affected employees had been notified and that the company had initiated a 30-day consultation period as required by law.
Tala also assured that impacted employees would receive severance packages, including salaries up to their last working day, one month’s pay in lieu of notice, and an ex gratia payment, in line with the Employment Act of 2007.
