Tech Companies Layoff 211,033 Employees, Kenya amongst the Top Countries

The tech industry is grappling with unprecedented layoffs, with over 211,000 tech companies employees losing their jobs globally since the beginning of 2024. 

This trend continues a troubling pattern that began in early 2023, driven by economic challenges, high interest rates, and rapid advancements in artificial intelligence (AI). 

Notably, Kenya stands out as the only African nation among the top countries affected by these layoffs, reflecting broader shifts in the global tech landscape.

Global Layoff Overview

According to a report by BestBrokers, which analyzed over 800 layoff announcements tracked on the IT job portal trueup.io, a staggering 211,033 employees have been laid off across more than 194 tech companies. 

U.S.-based corporations lead the layoffs with 120,283 job cuts—over half of the global total. 

Following the U.S. are companies from China with 12,900 layoffs, Germany with 12,547, Japan with 12,240, and India with 8,560.

Kenya’s inclusion in this list highlights the impact of global economic trends on local markets. 

The eCommerce platform Copia significantly contributed to Kenya’s layoff numbers by terminating 350 employees in July 2023 and shutting down its operations due to unfavorable market conditions. 

Additionally, Twiga Foods has also made substantial cuts to its workforce—211 employees in November 2022 and another 283 in August 2023—citing cost-effectiveness amid challenging economic circumstances.

Major Players and Their Cuts

Dell Technologies has emerged as the company with the largest number of layoffs in the tech sector this year. 

The PC manufacturer has cut a total of 18,500 jobs across two rounds of layoffs—accounting for approximately 8.77% of all global tech layoffs and 15.38% of U.S.-based cuts. 

Despite these reductions, Dell reported a year-over-year revenue increase of 9% for the second fiscal quarter of 2025, driven primarily by strong server sales.

Other notable companies include:

• Tesla: Laid off around 14,000 employees (approximately 10% of its workforce) as part of a restructuring following disappointing sales figures.

• Li Auto: Reduced its workforce by 10,000 employees, representing a significant portion of job cuts among Chinese firms.

• SAP: Announced layoffs affecting about 9,500 positions as part of its restructuring efforts.

• Cisco and Toshiba: Each laid off around 8,000 and 9,000 employees respectively as they adapt to changing market demands.

The trend is not limited to large corporations; smaller tech firms are also feeling the pressure to reduce costs through workforce downsizing.

Read Next: Flutterwave Cuts 24 Jobs to Focus on Payments and Remittance

Reasons Behind the Layoffs

Several factors contribute to this wave of layoffs within the tech sector:

1. Overhiring During COVID-19: Many companies expanded their workforces rapidly during the pandemic to meet increased demand for digital services. As restrictions lifted and demand normalized, firms found themselves overstaffed.

2. Rising Interest Rates: Increased borrowing costs have compelled companies to reassess their financial strategies and implement cost-cutting measures.

3. Advancements in AI and Automation: The push towards AI technologies has rendered certain roles redundant as companies streamline operations for efficiency.

Experts predict that these layoffs may continue into the coming months as businesses navigate financial pressures from high interest rates and economic uncertainty. 

Some forecasts suggest that unemployment rates could rise to around 5% by year-end if current trends persist.

Conclusion

The ongoing layoffs in the tech industry reflect a complex interplay of economic factors affecting companies worldwide. 

As Kenya finds itself among the nations most impacted by these changes, it underscores how global economic trends can resonate locally. 

With major tech firms prioritizing cost-cutting and efficiency through automation and AI investments, many workers are left facing uncertain futures in an increasingly volatile job market.

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