Microsoft, the global technology company, is set to reduce its office space in Nigeria and move more roles to Kenya, following recent layoffs and the closure of its African Development Centre (ADC) in Lagos.
The company will downsize its office at the Kings Tower building in Ikoyi from six floors to two, indicating a scaleback in its Nigerian operations. While Microsoft’s sales team will continue to occupy the two floors for the next year, there are indications that the company may not renew its tenancy in 2025 when its current agreement expires.
The layoffs, which occurred in May and July 2024, primarily affected the engineering team in Nigeria after the closure of the ADC. However, some engineers who remained with the company have been asked to relocate to Kenya to join new projects.
Microsoft emphasized that the closure of the ADC in Nigeria does not diminish its commitment to the country and the region. The company stated that it will continue to operate in Nigeria, supporting the country’s transformation objectives and investing in key growth areas.
The decision to reduce office space and move roles to Kenya comes after Microsoft announced a $1 billion investment in geothermal data centers in Kenya. The company also plans to establish an engineering team in Kenya to oversee these investments. This move positions Kenya as a favorable destination for foreign direct investment (FDI) and highlights the country’s growing tech industry.
While the scaleback in Nigeria may raise concerns, Microsoft’s commitment to Africa remains strong. The company recognizes the potential of the continent’s burgeoning talent pool and aims to contribute to its progress by providing digital solutions, fostering innovation, and empowering local talent. Microsoft’s decision to downsize its Nigerian office and shift roles to Kenya reflects its strategic approach to leverage opportunities and optimize operations across the region.
The closure of the ADC in Nigeria and the reduction in office space underscore the need for organizations to adapt to changing market dynamics and make necessary workforce adjustments. Microsoft’s move should be seen in the context of ongoing organizational changes and the company’s commitment to managing its business effectively.
As Microsoft continues to navigate these changes, it remains dedicated to Africa’s growth and development. The company’s investment in key growth areas and its focus on empowering local talent demonstrate its long-term commitment to the region. While the scaleback in Nigeria may have immediate implications, it is essential to consider the broader context of Microsoft’s strategy and its efforts to drive innovation and digital transformation across Africa.
