Africa tech sees 4,948 job cuts as funding drops, e-commerce hardest hit

Between January 2023 and March 2026, Africa's tech sector recorded 56 layoff events that disclosed 4,948 job losses, according to TechCabal Insights. Funding plunged from a 2022 peak of $4.65 billion to $2.92 billion in 2023 and $2.24 billion in 2024, while active investors fell by about half. The downturn triggered a wave of restructuring, with growth-stage startups bearing the brunt—47% of layoff events and 88% of the disclosed job cuts. Fintech recorded the most layoff events (20 of 56) but only 416 job losses, whereas e-commerce, with just 12 events, accounted for 2,872 losses due to larger workforces in logistics and warehousing. Two of the five biggest cuts—Copia Global and KOKO Networks—ended in total shutdowns, affecting thousands of workers and the low-income communities they served. Restructuring and cost-cutting were the most common reasons; AI was rarely cited, except for Zap Africa's February 2026 cut of eight staff (44% of its workforce) labeled an 'AI-driven efficiency shift.' Early 2025-2026 data hint at a funding rebound, but it is unclear whether hiring will rebound.

For Nigerian tech workers, this means heightened job-security pressure, especially in fintech and logistics-heavy firms. Consider upskilling in high-demand areas less prone to automation, building emergency savings, and monitoring funding trends before making career moves.

SOURCE: https://techcabal.com/2026/06/29/inside-africas-tech-layoffs/