After laying off half of its workforce in Nigeria, Microsoft plans to cut down its office space at the Kings Tower building in Ikoyi from six floors to just two, indicating a significant reduction in its Nigerian operations. A person with direct knowledge of Microsoft’s business revealed that the global tech giant might not renew its lease when it expires in 2025.
“Adjustments in our organization and workforce are necessary and regular parts of managing our business,” Microsoft stated in an email. “As we navigate these changes, Microsoft remains committed to Africa’s growth and development.”
Microsoft’s sales team, largely unaffected by the layoffs earlier this year, will occupy the two remaining floors for the next year. The layoffs in May and July 2024 impacted most of the engineering team in Nigeria, following the closure of the African Development Centre (ADC) in Lagos. A source said that the engineers who stayed with the company have been asked to move to Kenya to work on new projects.
“Though we have made the tough decision to shut down the Africa Development Centre in Nigeria, we want to stress that this does not lessen our commitment to Nigeria and the region,” a Microsoft spokesperson stated.
“We will continue to operate in Nigeria, actively supporting the country’s transformation goals. Our investment in key growth areas remains strong, and we are dedicated to contributing to Africa’s progress through digital solutions, innovation, and empowering local talent.”
After closing the ADC in June 2024, Olatomiwa Williams, Microsoft’s Nigerian Managing Director, met with Finance Minister Wale Edun and delivered a similar message. Nigeria’s concerns were understandable, especially after Microsoft decided to invest $1 billion in geothermal data centers in Kenya. Additionally, an engineering team will be established there to oversee these investments. Kenya is now leading the race in attracting foreign direct investment (FDI).
