BusinessDay

Cellulant cuts 30% workforce over rising costs

Cellulant Group on Monday laid off several employees representing almost 30 percent of its workforce in a move it says was aimed at reducing the rising cost of operations.

A source knowledgeable in the matter said the layoff affects the majority of the company’s employees in Nigeria.

“The Nigerian office was almost emptied,” One of the sources said.

The company in a letter signed by Akshay Glover, the chief executive officer of Cellulant, and seen by BusinessDay, noted that like the rest of the world, it was impacted by the economic meltdown that has continued to characterize most part of the post-COVID-19 era. In 2022, the global tech ecosystem was particularly hit by the economic downturn resulting in unprecedented layoff activities by companies of all sizes in the market.

The downturn also affects Nigerian tech companies. In 2022, Techpoint Africa noted that five tech companies in Nigeria laid off staff, the most notable being 54gene. The layoffs have continued in 2023, with the likes of Gokada cutting over 50 jobs.

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In the case of Cellulant, Glover said the conversation around trimming its expenses had begun towards the end of 2022 with a focus on driving performance toward profitability.

“As a result of this review, we have concluded that we will make select changes in our cost structure, impacting all our costs in 2023. This has meant looking at what we could carry forward from our 2022 spending while choosing the critical areas that need investments. As a result, we will focus on bringing efficiency in all our operating costs, from marketing, administration, infrastructure, people, and other costs supporting business growth,” Glover said.

Akshay Glover however says the company is in a better position as a result of the work done in 2021 and 2022. There will be adjustments to how Cellulant spends time and resources.

“We must deliver the best for our customers and our partners. Each one of us must learn and strive to do more with less. We must work hard to align our goals across each function, team, and individual, be delivery-oriented and always deliver delight to our customers,” said Akshay.