Microsoft has reduced its operations in Nigeria by reducing its office space at Kings Tower in Ikoyi from six floors to two. This decision follows the layoff of half of its workforce in the country and suggests a potential non-renewal of its tenancy in 2025.
“Organizational and workforce adjustments are a necessary and regular part of managing our business. As we navigate these changes, Microsoft remains steadfast in our commitment to Africa’s growth and development,” Microsoft stated in an email.
The company’s sales team, largely unaffected by the layoffs, will occupy the two remaining floors for the next year. The layoffs in May and July 2024 mainly impacted the engineering team after Microsoft closed its African Development Centre (ADC) in Lagos. Engineers who remained have been asked to relocate to Kenya for new projects.
Microsoft spokesperson said, “While we have made the difficult decision to close the Africa Development Centre in Nigeria, we want to emphasize that this move does not diminish our commitment to Nigeria and the region.
“We will continue to operate in Nigeria, actively supporting the country’s transformation objectives. Our investment in key growth areas remains unwavering, and we are determined to contribute to Africa’s progress by providing digital solutions, fostering innovation, and empowering local talent.”
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After closing the ADC in June 2024, Olatomiwa Williams, Microsoft’s Nigerian Managing Director, met with Finance Minister Wale Edun to reassure him of the company’s continued support for Nigeria.
The Nigerian government’s concerns are understandable, especially since Microsoft chose Kenya for a $1 billion investment in geothermal data centers and is setting up an engineering team there to oversee the projects. Kenya has successfully attracted significant foreign direct investment (FDI) from Microsoft, marking its second major win in this area.