Tech talent startup, Andela has announced that it has laid off 135 staff across four countries.
In a company-wide video conference call attended by over 1,300 staff from Nigeria, Uganda, Kenya, Rwanda, Ghana, Egypt, and the United States, the company’s CEO Jeremy Johnson announced the developments but maintained that there are no layoffs Rwanda and Ghana.
The company attributes the layoffs to the decline in customers who have been impacted by the pandemic.
“While our customer base has held up better than most, the majority have still been impacted by the economic downturn. Expectations for slow growth necessitate cost-cutting measures to ensure that we make it to the other side,” he said.
According to Johnson Andela’s directors will have their salaries slashed by 10 to 30 per cent as the company hopes to save about US$5 million from the layoffs. In addition, it will reduce its expenses on software, travel, and compensations among others hoping to save about US$25 million.
In September last year, Andela laid off over 400 staff across Kenya, Uganda, and Nigeria which was attribute to the high number of junior talent than they were able to place.
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.