Tech talent startup, Andela has announced plans to lay off over 400 staff across Kenya, Uganda, and Nigeria.
In a statement by Jeremy Johnson, the CEO and Co-Founder of Andela, the layoffs will affect junior engineers.
“Over the past few years, it’s become increasingly clear that the world needs what Andela provides: high-quality engineering-as-a-service. It’s also become clear, however, that the majority of the demand is for more experienced talent.”
With these developments, the company began sourcing and assessing mid-level and senior engineers who now represent more than 25% of their talent base.
Andela is solving the global technical talent shortage by building distributed engineering teams with Africa’s top software developers. The company describes itself as the most elite engineering organization in Africa, representing over 1500 engineers and working with more than 200 of the world’s most respected technology companies.
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Founded in 2014, with offices in New York, Nigeria, Kenya, Rwanda, Uganda, and Egypt, Andela is one of the best-funded African venture firms having banked US$181 million in VC from investors including the Chan Zuckerberg initiative.
According to the CEO, the company has more significantly more junior talent than they are able to place hence releasing approximately 250 Andelans in Nigeria and Uganda, with an additional 170 potentially impacted in Kenya; thereafter hire another 700 experienced engineers by the end of 2020 in order to keep up with demand from their partners.
The laid-off staff will receive a range of financial and emotional resources from the company while connecting them with specific innovation hubs in those countries to help connect them with opportunities in their local ecosystem.
While this is so, Andela has also indicated that they are on track to nearly double their revenue year over year but acknowledging that the venture is yet to attain profitability.