Africa’s technology sector is showing signs of stabilization after two years of steep job cuts, with layoffs slowing sharply in 2025.
Industry trackers report 765 jobs shed in the first half of 2025, down from 1,730 in the same period last year, a 56 percent decline.
The easing follows heavy restructuring in 2023 and 2024 as startups and tech firms trimmed costs amid tighter global investment conditions. For many companies, the priority has shifted from rapid growth to sustainability.
Nigeria and Kenya remain the hardest hit markets, accounting for the largest cumulative layoffs since 2023. Kenya has recorded about 2,258 cuts and Nigeria about 1,581, though quarterly figures have steadily fallen, suggesting firms are adjusting to new funding realities.
Much of the job loss reflected business pivots and operational reshaping rather than pure collapse. That gradual decline in redundancies points to a sector rebalancing its cost base and strategy.
Several high profile cases illustrate the trend. In February 2024, Nigerian e commerce firm Alerzo cut more than 70 roles in its fourth round of retrenchments, targeting warehouse and junior staff. Microsoft closed its Africa Development Centre in Lagos in May 2024, producing undisclosed job losses.
More recently, in June 2025, B2B platform Sabi trimmed about 20 percent of its workforce, roughly 50 employees, as it shifted focus to commodity exports and traceability services.
Despite the pain, the broader picture is improving. Tech companies raised about $1.42 billion in the first half of 2025 and merger and acquisition activity hit record levels, with more capital flowing into manufacturing, logistics, and digital trade platforms.
Structural hurdles remain, including non tariff barriers, weak infrastructure, and uneven regulation across markets, and these will test recovery momentum. Still, the drop in layoffs suggests the industry is moving from crisis toward consolidation, laying groundwork for steadier growth.
