Following a significant reduction of its Nigerian workforce, Microsoft is downsizing its office space at the Kings Tower building in Ikoyi.
The move, from six floors to two, indicates a strategic shift in the company’s African operations. An insider source suggests that Microsoft may not extend its lease in 2025 when the current agreement expires.
Company Statement on Restructuring
In response to inquiries, Microsoft released an emailed statement, saying, “Organizational and workforce adjustments are an inherent part of managing our business. While navigating these changes, we remain firmly committed to fostering growth and development across Africa.”
Impact on Teams and Future Plans
Microsoft’s sales team, largely unscathed by previous layoffs, will utilize the remaining two floors in the coming year. However, layoffs in May and July 2024 significantly impacted the engineering team in Nigeria following the closure of the African Development Centre (ADC) in Lagos.
Sources reveal that remaining engineers have been offered opportunities to relocate to Kenya for new projects.
Commitment to Nigeria Despite Closure of ADC
Addressing the closure of the ADC, a Microsoft spokesperson emphasized, “While we made the difficult decision to close the ADC in Nigeria, it does not reflect a diminished commitment to the country or the broader region.”
Continued Investment in Nigeria’s Growth
The spokesperson reiterated, “Our operations in Nigeria will continue, actively supporting the nation’s transformation goals. We remain steadfast in our investment in key growth areas, dedicated to driving progress in Africa through digital solutions, fostering innovation, and empowering local talent.”
High-Level Engagement and Concerns
Following the closure of the ADC in June 2024, Olatomiwa Williams, Microsoft’s Nigerian MD, met with Finance Minister Wale Edun, echoing a similar message of continued engagement.
However, concerns on the Nigerian side are understandable, particularly after Microsoft’s recent decision to invest $1 billion in geothermal data centers in Kenya and establish an engineering team there to oversee the project. Kenya appears to be gaining momentum in attracting foreign direct investment.