BrandArena: REVEALED: Why Andela Cut Down On Staff in Africa

Tuesday, 17 September 2019

REVEALED: Why Andela Cut Down On Staff in Africa

Andela, an African company that develops talents in software engineers, has confirmed plan to lay off 400 staff in Nigeria, Uganda and Kenya.

Co-founder and Chief Executive Officer of the firm, Jeremy Johnson, announced this on Tuesday that 250 junior engineers and staff from its Nigerian and Ugandan hubs will be leaving the organisation. Another 170 engineers may also be affected in its Kenyan hub.

He stated that the move was neccessary for restructuring of the company's talent pool in line with global market demands.

In a statement released on Tuesday, Andela said their departure is due to its decision to restructure its talent pool to “more closely align with global market demand”.

“Andela is now working with all impacted and potentially impacted employees and is committed to providing a holistic professional and financial support package,” it said.

“The company is partnering with CcHUB (Nigeria), iHub (Kenya), and Innovation Village (Uganda) to help connect impacted developers with opportunities in their local ecosystems.

“Together, they have identified over 60 companies who are looking to hire top quality junior engineering talent. These hubs will also offer impacted engineers the opportunity to use their co-working spaces free of charge for the next three months.”

According to Johnson, the layoff will lift the market from misreading it.

To redeem the cut-off, he assured that the company would bring around 500 mid and senior developers in next year. Also, he admits the mistakes of hiring more junior engineers on board than the company is able to place for remote work.

Announcement of $50 million in 2019 projected income and the layoff is not clear yet, but speculations are making the rounds. Some suggest that a couple of announcements would be to soften the concerns in its financial performance.

The skyrocketing startup growth in Nigeria and Kenya gives the green light for layoff-victims to get jobs in these countries. Yet, it is not sure whether the startups can give sound packages to the developers.

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