12 African startups and tech companies that cut workforce in 2025

As 2025 draws to a close, the wave of layoffs that shook the African tech ecosystem in 2023 and 2024 appears to be easing. They’re still happening, but less frantically than in the past two years.

African founders are learning to adjust to the market realities, including reduced funding and high costs. Startups are also learning that the teams they built during the boom years are too expensive to maintain in a slower market. 

Our coverage of layoffs this year showed that most founders are treating job cuts as a way to stay alive rather than a sign that a business is failing. Venture capital is hard to secure, investors are more cautious, and there’s far less patience for growth without revenue. 

Reducing headcount is helping companies stretch their cash, focus on what actually makes money, and buy time in an uncertain environment. 

This shift is changing the mood of the ecosystem. Hiring is slowing, workers are thinking twice about jumping ship, and the idea of tech as a fast and easy route to opportunity is fading. Yet startups are growing more careful, expansion is more deliberate, and spending is under closer watch. As attention turns to 2026, the emphasis is on building businesses that can survive tough years, not just thrive in good ones.

Here are some of the startups and tech firms that cut jobs in 2025 amid tighter capital, shifting strategies, and a stronger push toward profitability.

Metro Africa Xpress (MAX), Nigeria

MAX, a Nigerian mobility financing startup, began the year by laying off about 150 employees, roughly 30% of its workforce. The company said the restructuring was necessary to support a revised business model and cut operating costs as it pivoted to focus exclusively on financing electric vehicles. The terminations took effect immediately, with no monetary severance offered. While MAX has not previously carried out mass layoffs, it has undergone several major pivots since its founding in 2015, shifting from deliveries to ride-hailing and now to vehicle financing.

54 Collective, South Africa

Venture firm 54 Collective announced layoffs in February following the end of its partnership with the Mastercard Foundation and the shutdown of its Africa-focused venture studio. The firm said it was unable to secure alternative funding to sustain its operations.

Vendease, Nigeria

Vendease, a Nigerian YC-backed food procurement startup, laid off 120 employees, cutting its workforce by 44% in February 2025. This marked the company’s second major round of layoffs in five months, following the dismissal of 68 employees in September 2024. The company said the cuts were necessary to extend its runway and push toward profitability amid naira depreciation and persistent inflation.

Bento, Nigeria

In February, Bento dismissed its entire 10-person technology team in an abrupt and contentious episode. The layoffs followed protests over delayed salaries and were compounded by leadership instability after the resignation of the company’s CEO. The incident unfolded against the backdrop of allegations of tax and pension fraud, with the founder deactivating staff access shortly after the protest.

eBee Africa, Kenya

Although announced in August, eBee issued redundancy notices as early as February, affecting most of its roughly 50 employees. The Kenyan mobility startup, which had set out to put one million electric bicycles on African roads by 2030, was left with a skeletal team before the remaining staff exited voluntarily. The layoffs were driven by declining revenues, rising costs, and slower-than-expected adoption of electric bikes in Kenya, where cheaper alternatives continued to dominate. The company was already under pressure following leadership changes and tax disputes.

Meta, Africa

Meta’s Africa operations were affected in February after the company laid off an undisclosed number of staff as part of a global performance-based restructuring. The cuts formed part of a wider round that affected about 3,600 employees worldwide and were linked to Meta’s push for efficiency and increased investment in artificial intelligence and core products.

Tala, Kenya

Digital lender Tala laid off 28 employees in Kenya in April as part of a recalibration of its regional operations. The company cited the need to streamline teams, align costs with lending performance, respond to changing customer repayment behaviour, and strengthen risk management in a tighter credit environment. Tala had initially planned to cut 55 roles, but later revised the number downward.

Twiga Foods, Kenya

Twiga Foods laid off more than 300 employees in May as part of a major restructuring that included the creation of a new holding company. The cuts were aimed at streamlining operations and improving efficiency following the acquisition of three Kenyan FMCG distributors. Twiga had previously laid off 59 employees in August 2024 and has carried out several rounds of cuts in recent years.

Sabi, Nigeria

Sabi, a Nigerian B2B e-commerce startup, laid off about 50 employees, representing roughly 20% of its workforce, in June. The company said the cuts were tied to a strategic pivot away from general merchant services toward a minerals traceability and commodities-focused business. The move followed earlier operational scale-backs as Sabi adjusted to changing market conditions. 

Flutterwave, Kenya and South Africa

Flutterwave cut about half of its workforce in Kenya and South Africa in mid-2025, with the layoffs reported in July. The payments company cited cost optimisation and a renewed focus on profitability as it positions itself for a potential IPO. The cuts followed an earlier round in 2024, when about 3% of staff were let go.

Businessfront, Nigeria

Businessfront, the publisher of Techpoint Africa, Finance in Africa, Energy in Africa, and Intelpoint, laid off a small but undisclosed number of staff in October. The company said the move was aimed at ensuring long-term sustainability and sharpening strategic focus. The layoffs reflect broader pressure across African tech media, where declining advertising revenues and shifting audience habits have forced similar cuts at peers.

Jumia, Nigeria

E-commerce company Jumia cut about 7% of its workforce in November, reducing headcount to roughly 2,010 employees. The company said the layoffs were part of ongoing efficiency measures, including greater use of AI in customer service and marketing, as it prioritised profitability over expansion.