Africa’s technology industry is showing signs of stabilization after two turbulent years of job cuts, with the pace of layoffs slowing sharply in 2025.
According to industry trackers, African startups and tech firms shed 765 jobs in the first half of 2025, down from 1,730 in the same period last year, a 56% decline. The easing comes after widespread restructuring in 2023 and 2024 that forced companies to trim costs amid tightening global investment conditions.
Nigeria and Kenya, the continent’s largest startup hubs, remain the hardest hit. Since 2023, Kenya has recorded about 2,258 layoffs and Nigeria 1,581, though the quarterly figures have steadily fallen, suggesting companies are adjusting to the new investment climate.
The layoffs have been driven largely by restructuring and business pivots. In February 2024, Nigerian e-commerce startup Alerzo cut more than 70 jobs in its fourth round of retrenchments, targeting warehouse and junior staff. In May 2024, Microsoft shut its Africa Development Centre in Lagos, resulting in undisclosed job losses. More recently, in June 2025, B2B commerce platform Sabi laid off about 20% of its workforce, around 50 employees, as it shifted focus to commodity exports and traceability services.
Despite the cuts, the broader outlook is improving. Tech firms across Africa raised $1.42 billion in the first half of 2025, while merger and acquisition activity reached record levels. Investments are increasingly flowing into manufacturing, logistics, and digital trade platforms, helping startups recalibrate their growth models without the large-scale redundancies that marked earlier years.
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Still, challenges remain. Non-tariff barriers, weak infrastructure, and uneven regulatory environments continue to pressure startups, particularly in Nigeria and Kenya. But the reduction in layoffs signals that the sector may be moving from crisis to consolidation.
Africa’s tech industry is not just retrenching but adapting, laying the groundwork for more sustainable growth.
