The technology industry in 2022 went from a bright, promising year to a gloomy one highlighted with several reports of trimming of workers. According to Layoffs.fyi, a website that tracks the cuts in tech jobs, over 130,000 people in the tech industry have lost their job this year alone, including tech giants like Snap, Amazon, Twitter, and Meta.
Although tech companies are laying off employees for different reasons, there are some basic reasons including global inflation as a result of the war between Ukraine and Russia. Global investors have also failed to sponsor seed funding rounds of startups, like in the case of Lazerpay.
State of play
The global pandemic of 2020 saw many companies move their operations online as people were locked in their homes and forced to spend more time on the internet. People started communicating more online, hosting official meetings virtually, working remotely became normal, and kids were getting online school classes as well.
- This period saw many tech companies employ more staff to cope with their growing audience on the internet, like with Meta. However, most executives miscalculated that at some point, the pandemic will be over and people will go back to their normal lives.
- These miscalculations by the company’s executives have now evolved into tech giants massively laying off staff as a response to the signs of a slowdown in the industry.
Going into the year on the backdrop of a record-breaking 2021, analysts poised Africa to break the $5 billion mark in 2022. Despite global investors majorly taking a pause due to the rising global inflation, the continent raised $1 billion in the first few weeks of 2022 and $2.25 billion by the end of the first quarter of the year. By the second quarter of 2022, African startups funding had risen to $3.1 billion as the H1 ended.
However, in the months of July, August and September and with inflation continuing to bite harder, the continent has only secured $247 million, $228 million and over $134 million, respectively.
There are several indicators that the industry will rebound in 2023, with marketing being a major source of revenue, seeing as online adverts have consistently pulled in some serious funds. However, it is unsure if the new heights will match that of 2020.