Layoffs in the tech industry have become one of the many global challenges the industry is currently facing; the US, Asian, and European money markets are inclusive. From declining venture funding for startups to stock market plummeting, recession fears are holding back global investors from spreading their funds. Furthermore, tech businesses are taking drastic conservative measures to keep their businesses afloat.
Egypt, for example, one of Africa’s biggest tech nations, which has raised $317 million in funding during the first half of 2022, has been suffering these economic downturns. A report by Wamda disclosed that Egyptian startups, including Vezeeta, a health-tech startup which raised $40 million some years ago; Elmenus, a food-tech startup; Capiter, a B2B e-commerce retail platform that raised $33 million in 2021, etc. are laying off staffs and cutting salaries.
Here are other tech companies in Africa trimming their staff strength:
54Gene, a genomics startup and one of Nigeria’s largest providers of COVID testing back in 2020, has trimmed its staff strength by laying off 95 contract workers. The company who raised $25 million in the Q3 of 2021 has laid off a huge chunk of its marketing department and slashed salaries of a few senior employees in exchange for stock options. The decline in the demand for this company’s services post Covid is responsible for the economic downturn.
The 10-year-old Ghanaian-based company with presence in 41 countries which raised $5 million in a Series A round in 2021 has laid off “a lot” of employees according to reports. The social enterprise collaborates with NGOs, government agencies, donors, and businesses to communicate with their audience in local languages through mobile phones. The decline in the demand for this company’s services post Covid is responsible for the economic downturn.
Alerzo is a B2B e-commerce retail startup based in Ibadan, Nigeria, which announced a $10.5 million Series A funding round. Alerzo stated that the company would use the funds to expand its operations into northern Nigeria and launch a payment and lending platform. The company, after securing the funds, added more workers, which has become a financial burden to it. Alerzo has laid off 100 employees and slashed some employees’ salaries.