Microsoft Layoffs and Closures Now Reported in Africa

posted by Roy Schestowitz on May 08, 2024,
updated May 10, 2024

Microsoft Uninstalls Nigeria as it closes African Development Centre (ADC) in Lagos

“Amid economic challenges in Nigeria, Microsoft’s African Development Centre (ADC) in Lagos faces potential closure, putting over 200 jobs at risk and exacerbating the country’s unemployment crisis. The news comes as the Nigerian stock market experiences a downturn, with the NGX All-Share Index declining and the naira depreciating against the dollar. This development follows a series of exits by foreign companies from Nigeria, including Bolt Nigeria’s quiet layoffs and office closures.

“While Microsoft has not issued an official statement, affected employees might receive salaries until June and continue to have access to their health insurance. The ripple effects of this exit are significant, impacting various sectors including printing presses, HMOs, brand communication firms, audit firms, and stationery vendors. This situation highlights the challenges foreign investors face in Nigeria’s current economic climate, leaving many to wonder about the future of innovation and job creation in the country.”

Update

A couple more pieces in recent hours:

• Microsoft sacks workers at Africa Development Centre in Nigeria

  Microsoft, an American technology company, has sacked its workers at the Africa Development Centre (ADC) in Lagos, Nigeria.

  The ADC is Microsoft’s initiative in Africa for an engineering centre to provide local solutions with global scalability as well as provide employment opportunities and further enhance technological innovations on the continent.

  Confirming the development on Wednesday, a staff, who spoke on condition of anonymity, told TheCable the workforce was laid off but the reasons are still unknown.

• Microsoft confirms African Development Center layoffs but denies its closure

  Microsoft set up its African Development Center in Lagos, Nigeria, and Nairobi, Kenya, in 2019 to expand its engineering talent pool, focus on student and community engagements, and invest in Microsoft programmes.

Positive spin/PR:

• Microsoft Confirms African Development Center Layoffs But Denies Its Closure

  Contrary to several local reports, Microsoft has not shut down its African Development Center (ADC) in Nigeria. According to a Microsoft spokesperson, the Lagos facility is still operational.

  During a call with Techpoint Africa, the spokesperson clarified that while the engineering team at the African Development Center in Lagos has been let go, the Microsoft office in Nigeria remains operational.

Non-spin:

• Microsoft Shuts Nigeria Engineering Center Just Two Years After Opening

  The decision to shut down the ADC in Lagos adds to Nigeria’s broader economic challenges, including a persistent currency crisis, dollar shortages, and high inflation.

  These factors have impacted business growth and diminished consumer purchasing power, prompting companies like Procter & Gamble, GSK, and Bayer to overhaul their African strategies.

  “Microsoft has decided to close the Africa Development Centre in Nigeria, and as a result, some of our employees based in Nigeria will be impacted,” a Microsoft spokesperson said, per Bloomberg.

  “Organizational and workforce adjustments are a necessary and regular part of managing our business.”

  However, how many people would be impacted has yet to be made clear.

Another source:

• Microsoft to shut Africa development centre in Nigeria

  It was not immediately clear how many people would be impacted.