Software Firm Andela Retrenches 170 Staffers In Kenya

Software training accelerator Andela is set to cut 400 jobs among them 170 in Kenya, with the company blaming shifting market demands for the restructuring.

Chief executive and co-founder Jeremy Johnson said the move will impact junior engineers as the company focuses on boosting its senior talent.

“This shift in demand also means that we now have more junior talent than we are able to place,” he said in a statement.

The layoffs come as the startup released first-time earnings figures indicating it will surpass $50 million (Ksh5 billion) in annual revenues for 2019.

“This is a challenge for the business, and for these junior engineers who want and deserve authentic work experiences that we are not able to provide.”

Read: If Africa Wants To Share Its Pie, It First Has To Bake It – Greg Mills

Approximately 250 junior engineers and staff from the firm’s Nigeria and Uganda hubs will also be laid off.Andela says affected employees will be given a send-off financial package and the company will work with incubation hubs in Kenya, Nigeria and Uganda to help connect the affected developers with job opportunities.

“Andela is a community as much as we are a business and, as such, our immediate priority is to provide support to those potentially affected by today’s news and the means for them to find stability,” said Andela Kenya Country Director Janet Maingi.

At the same time the company announced it plans to hire an additional 700 experienced engineers by the end of next year.

Andela trains and outsources software engineers and for the first time yesterday revealed it is projecting Sh5 billion in revenue for 2019.It is one of the best-funded startups in Africa, receiving more than Sh18 billion in venture capital funding since being founded five years ago.

For all the latest technology and business news from Kenya and the world, follow us on Twitter and like us on Facebook