Africa's tech ecosystem recorded 2,421 layoffs in 2025, the highest annual retrenchment in five years, as companies accelerate a strategic shift towards profitability amid improving funding and maturing market dynamics.
The figure reported by TechCable Insights represents a deliberate profit boost, where companies streamlined operations, optimized costs, pivoted business models, and abandoned non-core roles to extend runway, achieve breakeven, and build sustainable growth rather than pursue uncontrolled expansion in a difficult capital environment.
Equity Group in Kenya made the largest single wave of sackings, firing more than 1,200 employees (with reports citing figures around 1,200 to 1,500) following a sweeping internal fraud investigation launched in April 2025.
CEO James Mwangi described the purge as necessary to protect customers' savings and maintain the integrity of the bank, and said the investigation had revealed staff collusion with fraudsters, leading to losses of more than $15.4 million (KES 2 billion) over two years, including unauthorized transfers to offshore accounts.
Mwangi insisted on a zero-tolerance policy, saying, “I will be ruthless,” and framed the action as a cultural shift to address misconduct in departments and protect the institution amid customer concerns.
Twiga Foods in Kenya cut more than 300 jobs as part of a major restructuring that saw the creation of a new holding company (“Newco”) to consolidate recent acquisitions of three FMCG distributors and move towards an asset-light model. The company described the changes as “a routine corporate restructuring” to streamline operations, eliminate duplication, reduce costs and improve efficiency following its expansion beyond fresh produce supply.
Also read: 50% increase in startup shutdowns in Africa by 2025, investors' capital worth $ 52 million lost
Fintech unicorn Flutterwave reduced 50 percent of its workforce in Kenya and South Africa in a performance and strategy-based review (starting March 2025 and affecting departments such as compliance, legal, HR and sales).
The company described the cuts as necessary to reduce operating expenses, increase margins and accelerate progress toward profitability, apparently linking these moves to investor pressure and preparations for a potential public listing.
Nigerian mobility firm Max (Metro Africa Express) laid off about 150 employees, about 30 percent of its workforce, in January 2025 to support a complete pivot to electric vehicles (EV) financing, exit less profitable lines and redirect resources to increase EV adoption in Nigeria, Ghana and Cameroon.
A company spokesperson explained that the restructuring was necessary for the company's transition to exclusively financing EVs, acknowledging that it was not taken lightly while providing support to affected employees.
YC-backed healthtech Reliance Health in Nigeria shed more than 100 roles (with the report citing 106 in support, sales, marketing and operations) in company-wide cuts through July 2025.
Managers informed teams that “this decision is part of company-wide workforce reductions aimed at ensuring the long-term sustainability of the business and supporting our immediate target of achieving profit this quarter,” underscoring the pressure for profitability as the main driver.
Similar themes emerged at Wendy's in Nigeria (120 cuts, or 44 percent of employees, in second round to expand runway amid economic challenges) and Sabi (50), EB (50 in Kenya), Tala (28) and other companies.
Nigeria and Kenya were most geographically impacted, with South Africa also affected due to the regional operations of companies like Flutterwave.
