Since 2020, the tech industry in Africa has faced significant challenges, leading to substantial job losses across various companies. The COVID-19 pandemic and a shifting economic landscape have prompted many firms to reassess their workforce needs.
The technology sector, once a beacon of growth and innovation, now faces economic pressures that have led to several prominent layoffs across the continent. This trend has been particularly pronounced in the e-commerce and fintech sectors, where companies have had to adapt to changing market conditions and consumer behaviours.
These layoffs reflect broader global trends, with many tech firms reducing their workforce in response to economic pressures and a strategic shift towards sustainability.
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A report by Business Financing UK, using data analysed by Layoffs.fyi, reveals that the largest tech company layoffs globally over the past four years were spread across various countries and continents, reflecting both the scale and timing of these workforce reductions.
Here are the 10 biggest tech company layoffs in Africa since 2020, 3160 jobs lost combined.
1. Jumia — Staff laid off: 900
Jumia, often referred to as Africa’s Amazon, has faced multiple rounds of restructuring in recent years. In November 2023, the e-commerce giant laid off 900 employees as part of cost-cutting measures in response to a difficult business climate. This move reflects the challenges facing the e-commerce sector in Africa, where competition and operational costs continue to weigh heavily.
2. Alerzo — Staff laid off: 400
Nigeria-based Alerzo, a business-to-business e-commerce platform, reduced its workforce by 400 employees in June 2023. As one of the leading e-commerce platforms supporting small retailers, Alerzo’s layoffs highlight the strain on digital marketplaces dealing with fluctuating consumer demand and high operating expenses.
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3. Renmoney — Staff laid off: 391
Renmoney, a Nigerian fintech company providing loans and financial services, laid off 391 employees in April 2020. Renmoney’s decision came at the start of the global COVID-19 pandemic, a period that significantly affected financial services and led companies to streamline their operations in response to reduced lending activities.
4. Copia: E-commerce — Staff laid off: 350
Copia, a Kenyan e-commerce platform catering to low- and middle-income consumers, faced its own challenges in July 2023, resulting in 350 layoffs. With a focus on reaching underserved markets, Copia’s workforce reduction was part of a restructuring strategy to adjust to changes in purchasing behaviours and economic conditions.
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5. Wave — Staff laid off: 300
In July 2022, Wave, a mobile money service based in Ghana, laid off 300 employees. This decision came as the fintech sector experienced mounting regulatory and economic pressures. Wave’s service, which facilitates digital transactions in markets with limited banking access, faced hurdles as fintech firms across the continent navigated complex regulatory environments.
6. Twiga — Staff Laid Off: 283
Twiga, a Kenyan agritech company that connects farmers and vendors, announced 283 layoffs in August 2023. Serving as an intermediary between producers and retailers, Twiga cited operational adjustments in response to market challenges as the reason behind the layoffs, reflecting broader pressures within Africa’s agricultural sector.
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7. Twiga — Staff laid 0ff: 211
This marked Twiga’s second wave of layoffs, with 211 employees affected in November 2022. The company’s restructuring efforts were aimed at sustaining growth in a challenging economic environment and addressing the need for operational efficiency in a market with varying supply chain demands.
8. mPharma — Staff laid off: 150
Ghanaian healthcare company mPharma, which manages pharmaceutical services and solutions across Africa, laid off 150 employees in April 2023. With healthcare accessibility and supply chain issues as its core challenges, mPharma’s decision came in response to a shifting industry landscape that required strategic recalibrations.
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9. Alerzo — Staff laid off: 100
Following an earlier reduction, Alerzo laid off an additional 100 employees in November 2023. As an e-commerce service provider to small retailers, this further workforce reduction underscored the difficulties facing e-commerce players in Nigeria, with economic constraints and changing consumer demands impacting the sector’s sustainability.
10. Bitmex — Staff laid off: 75
Bitmex, a cryptocurrency exchange with a presence in Seychelles, reduced its staff by 75 in April 2022. The company cited the volatility in the crypto market as the primary reason behind its decision, reflecting global patterns of contraction in the crypto industry in response to regulatory scrutiny and market fluctuations.
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