Microsoft is reducing its office space at the Kings Tower building in Ikoyi, Lagos, from six floors to two, following layoffs that affected half of its workforce in Nigeria.
According to a source familiar with the company’s plans, the technology giant may not renew its tenancy in 2025 when the current lease expires.
“Organizational and workforce adjustments are a necessary and regular part of managing our business,” Microsoft said in an emailed statement. “As we navigate these changes, Microsoft remains steadfast in our commitment to Africa’s growth and development.”
Microsoft’s sales team will occupy the remaining two floors, which were largely unaffected by the layoffs earlier this year. The layoffs in May and July 2024 primarily impacted the engineering team in Nigeria following the closure of the African Development Centre (ADC) in Lagos. Retaining engineers have been asked to relocate to Kenya to join new projects.
“While we have made the difficult decision to close the Africa Development Centre in Nigeria, we want to emphasise that this move does not diminish our commitment to Nigeria and the region,” a Microsoft spokesperson said. “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.”
In June 2024, after the closure of the ADC, Olatomiwa Williams, Microsoft’s Nigerian managing director, met with Finance Minister Wale Edun to reiterate the company’s commitment to Nigeria.
Concerns in Nigeria grew after Microsoft announced a $1 billion investment in geothermal data centres in Kenya, which includes setting up an engineering team to oversee these investments. Kenya has thus become a significant beneficiary of foreign direct investment from Microsoft, further strengthening its position in the region.
