- Microsoft is reportedly scaling back its Nigerian operations, reducing its office space at the Kings Tower building in Ikoyi, Lagos, from six floors to two, with the likelihood of not renewing its tenancy in 2025 when its current agreement expires.
- This development follows Microsoft's confirmation of layoffs at its African Development Centre (ADC) engineering team in Lagos in May 2024. Nevertheless, the company has stated that it is not shutting down the operations of Microsoft Nigeria, which oversees sales and marketing.
- Consequently, Microsoft's sales team will occupy the two floors for the next year.
At the time of the ADC layoffs, Microsoft indicated that workforce adjustments were necessary as part of managing its business. However, it also emphasised its continued commitment to Africa's growth and development.
Meanwhile, TechCabal reported that engineers who stayed on the team have been asked to relocate to Kenya to join new projects.
In 2019, Microsoft set up its African Development Centre in Lagos, Nigeria, and Nairobi, Kenya, to expand its engineering talent pool, enhance student and community engagements, and invest towards Microsoft programmes.
Five years later, it has laid off its Nigeria ADC and is relocating engineers still on the team to Kenya.
In March 2023, Microsoft Kenya laid off several employees at its Africa Development Centre, Nairobi, reportedly impacting at least 20 employees.
Recently, Microsoft made new digital investments in Kenya in collaboration with G42, an artificial intelligence (AI) firm, to build a data centre and establish an East African Innovation Lab in Nairobi, among other initiatives with an initial $1 billion investment.
Aside from Microsoft, another tech giant, Meta, the parent company of Facebook, Instagram, and WhatsApp, made a similar move in June 2024, reducing its office space at the Kings Tower building in Ikoyi, Lagos to introduce desk sharing. This came after Meta laid off about 35 people in Nigeria, including its engineering team of up to 24 employees.
