African tech layoffs hit record high as AI, banking mergers eliminate 2,500 jobs in H1 2026

African technology companies cut a record 2,574 jobs in the first half of 2026, which indicates a 236 percent increase from a year earlier, as artificial intelligence adoption, banking consolidation and cost-cutting measures reshaped the continent’s employment space.

This is according to TechCabal Insights’ State of Tech in Africa H1 2026 report, which found that layoffs reached an all-time high during the first six months of the year, up from 1,196 recorded in H1 2023, reflecting a structural shift rather than isolated company-specific challenges.

Artificial intelligence emerged as one of the biggest drivers of workforce reductions, with startups replacing routine human tasks with automated software.

Companies including Jumia, Zap Africa and Egypt’s Breadfast reduced technology, product and marketing teams as AI tools took over operational workflows previously handled by employees.

Jumia cut about 200 jobs after deploying artificial intelligence tools to automate traditional operational processes, while cryptocurrency exchange Zap Africa laid off 44 percent of its workforce after integrating Martha AI to manage customer support.

The report suggests that AI is no longer being deployed only as a productivity tool but is beginning to replace functions traditionally performed by workers across customer service, product management and marketing.

Beyond AI, banking reforms also contributed significantly to job losses as Nigeria’s banking sector saw hundreds of layoffs following mergers triggered by new capital requirements.

Unity Bank dismissed about 100 employees after its merger with Providus Bank, while First Bank let go of hundreds of long-serving contract workers as part of a broader cost-reduction programme.

The report noted that mergers eliminated overlapping corporate functions, forcing financial institutions to streamline operations while meeting new regulatory capital thresholds.

Nigeria’s fintech sector was also affected as Kuda eliminated at least 100 positions during a reorganisation of its marketing division, while Quidax reduced staff across multiple departments as it shifted its strategy from consumer-focused services to business infrastructure products.

Outside Nigeria, Kenya recorded some of the continent’s largest workforce reductions.

Sama, a data annotation company, laid off 1,108 employees in Nairobi after losing a key Meta contract, while Standard Chartered Kenya reduced its workforce to fewer than 1,000 employees as automation and digital banking transformed branch operations.

KOKO, Kenya’s clean energy company, also dismissed 700 workers after government restrictions blocked critical carbon credit sales, which highlights how policy changes and macroeconomic pressures continue to affect employment beyond the technology sector.

South Africa also experienced significant cuts, with Pact, a packaging company, eliminating 377 jobs after shutting its Springs mill amid pressure from cheaper imports, while MultiChoice introduced voluntary severance packages as part of a turnaround strategy.

The record layoffs were driven by a combination of economic pressures, changing business models, automation, shrinking consumer businesses and corporate mergers.

“Companies laid off a record 2,574 workers as corporate cost-cutting measures became more common across the region,” the report said, noting that many businesses were restructuring operations to respond to macroeconomic challenges rather than simply reducing headcount.

Despite the wave of job losses, the report indicates that the cuts occurred alongside growing mergers and acquisitions, startup expansions and fresh investment commitments.

This suggests the African technology ecosystem is entering a new phase where companies are prioritising operational efficiency and sustainable growth over rapid workforce expansion.