Andela lays off 10% of its workforce in Nigeria, Kenya, Uganda and Egypt.

Andela, a software talent company that trains and recruits developers for technology companies across the globe has laid off 135 members of its total workforce in four bureaus including Nigeria, Kenya, Uganda and Egypt. Only Ghana and Rwanda were unaffected by the restructuring. The reason behind this gut-wrenching decision needs no further explanation, considering the recent coronavirus pandemic and the far-ranging consequences disrupting several sectors and governments.

TechCabal reports that on Tuesday, Andela’s CEO Jeremy Johnson led a company-wide video conference call attended by over 1,300 staff from seven countries where Andela operates from. Shortly after the call, an email was sent out to all staff disclosing the new changes; he cited the effect of shrinkage in the company’s customer base as the major reason necessitating the exits. Except engineers, other staff in all of the company’s departments were affected.

Andela expects to “see churn spike this year as well as a decline in new customers due to the economic uncertainty. Expectations for slow growth necessitate cost cutting measures to ensure that we make it to the other sid.

Jeremy also noted that the salaries of directors and C-suite staff who remain with the company will be slashed between 10 and 30%. The company hopes to save about $5 million from the layoffs and in the long run, reduce its expenses of almost $25 million on software, travel, compensations among others. The new development will take effect from May 8, however, the startup has promised to provide severance packages and four months of health coverage for the affected employees.

More Branches.

Internet Company Reaching Young & Smart Africans from Lagos, Nigeria.

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