Branch Layoffs Show African Tech Shift Despite Profitability

Visa-backed fintech Branch laid off undisclosed employees in Kenya and Nigeria in April, continuing African tech's layoff trend. The company claimed both Nigerian and Kenyan businesses remained profitable in 2025, with $30M global profit, suggesting operational rather than financial reasons for cuts. This reflects a broader market shift where investors now demand efficient growth over expansion.

Branch joins other African tech layoffs including Kuda (hundreds cut), Quidax (headcount reduced), and Zap Africa (8 laid off). Despite the cuts, Branch offered affected employees several months severance and extended healthcare.

In other tech developments, Investec (South Africa's 5th largest bank) applied for an Irish banking license to expand into the EU's $45 trillion market, while South Africa's Gautrain agency plans to launch Gau Express ride-hailing service in October to compete with Bolt and Uber. Orange also announced backing for a new 20,000km subsea cable connecting Nigeria and 20 African/European countries, potentially improving West Africa's internet infrastructure.

For tech workers, the message is clear: jobs can disappear even at financially healthy companies, making diversification and emergency funds increasingly important.

SOURCE: https://techcabal.com/2026/05/25/techcabal-daily-layoffs-at-branch/