Chowdeck trims its contract workforce by 68% following a series of operational enhancements, while preparing to launch in Ghana. The startup, which recently expanded its operations team sixfold—from 20 employees in January 2024 to 120 in January 2025—has decided to streamline its staffing in response to its ambitious growth targets for 2025.
CEO Femi Aluko explained that the rapid expansion necessitated the hiring of many contract staff to support operations during a period of fast growth. “We had to bring on extra hands to manage our increasing workload, but over the past two months, we have optimized our processes. What once required 24 people can now be managed by just two,” Aluko said, noting that average delivery times have improved from 41 to 33 minutes as a result.
A total of 86 contract employees have been let go, and the affected staff were informed of the decision during a meeting this morning. Each departing employee will receive a severance package that includes three months’ salary and health insurance, and Chowdeck is assisting as many as possible in finding opportunities outside the company. Importantly, no full-time employees have been impacted.
The operational improvements have not only reduced costs but also accelerated Chowdeck’s ability to expand into new markets. The startup, which raised a $2.5 million seed round in 2024, recently hit a milestone of 10 million deliveries, 60% of which occurred within the last nine months. In January 2025, Chowdeck expanded its services to Kaduna and Owerri, and the company is now set to beta launch its services in Ghana next week.
With a Country Manager already in place for Ghana, the company’s strategy is to initially focus on Accra, launching in viable cities one at a time. “Being live in Ghana means we’re starting in Accra. Our approach is city-by-city expansion. We’ve developed a product that fits well in specific markets, and we want to replicate that success across Africa,” Aluko added.
Previously, launching a new city required a turnaround of three months. Now, with the revamped operational model, Chowdeck can roll out in a new city within just one week—its recent weekend launch in Owerri stands as a testament to this efficiency.
