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Microsoft Confirms African Development Center Layoffs But Denies Its Closure - Business - Nairaland

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Microsoft Confirms African Development Center Layoffs But Denies Its Closure by adamusuleiman1: 6:51am On May 09
Contrary to several local reports, Microsoft has not shut down its African Development Center (ADC) in Nigeria. According to a Microsoft spokesperson, the Lagos facility is still operational.

During a call with Techpoint Africa, the spokesperson clarified that while the engineering team at the African Development Center in Lagos has been let go, the Microsoft office in Nigeria remains operational.

Although the exact reasons for the changes are not specified, the company said, "Organisational and workforce adjustments are a necessary and regular part of managing our business. We will continue to prioritise and invest in strategic growth areas for our future and in support of our customers and partners.”

It's worth noting that Microsoft has been implementing workforce adjustments and organisational changes since 2023 to align with global market conditions and meet customer needs.

In July 2023, the tech giant initiated layoffs, supplementing the 10,000 job reductions announced earlier in January of that year. Microsoft's continuous drive to streamline its operations and concentrate on strategic growth sectors necessitated these workforce changes.


Microsoft set up its African Development Center in Lagos, Nigeria, and Nairobi, Kenya, in 2019 to expand its engineering talent pool, focus on student and community engagements, and invest in Microsoft programmes.

The company emphasised its commitment to training, equipping, and hiring engineering talent in Nigeria and West Africa. These efforts were aimed at helping to develop Microsoft products that are used by over 1 billion devices, empowering millions of users and organisations globally to achieve more.

However, despite operating for five years, employing at least 120 engineers and more than 200 total staff members, the company has decided to part ways with the engineering team.

Meanwhile, local news reported that affected employees are set to receive salary payments until June 2024 and will still be covered by health insurance.

As Microsoft lays off the engineering team, the future of its African Development Center in Lagos hangs in the balance. With the core team gone, questions arise about the facility's continuation.

Speculation is rife about whether Microsoft will shutter its operations in Nigeria or consider AI-driven alternatives. However, indications point to the former, particularly in light of recent developments. On May 7, 2024, Microsoft’s Xbox announced plans to close several gaming studios, including the renowned Arkane Austin.

While the reasons for this decision remain unclear, it reflects broader economic challenges, such as foreign exchange concerns and unfavourable economic conditions, resulting in the closure of several international businesses across Nigeria.

https://techpoint.africa/2024/05/08/microsoft-adc-layoff-engineering-team-lagos/

9 Likes 1 Share

Re: Microsoft Confirms African Development Center Layoffs But Denies Its Closure by adamusuleiman1: 6:53am On May 09
From Reuters, 7th May, 2024:

Microsoft's Xbox shuts multiple studios, consolidates teams in cost-cutting move

May 7 (Reuters) - Microsoft's (MSFT.O), opens new tab Xbox is shutting down a number of gaming studios including Arkane Austin, making it the latest publisher to shut down studios amid signs of a gaming slowdown.

Studios such as "Hi-Fi Rush" maker Tango Gameworks, headquartered in Tokyo, and Canada-based Alpha Dog will also be closed and some employees will be laid off, Matt Booty, head of Xbox Game Studios said in a memo that was seen by Reuters on Tuesday.

Xbox declined to comment when asked about the number of employees impacted by the layoffs.
Growth in personal computing and console gaming is expected to remain below pre-pandemic levels as gamers record fewer hours of playtime owing to weaker release schedules, data from research firm Newzoo showed.

The "reprioritization of titles and resources" is so that Xbox can invest deeply into its portfolio of games and new intellectual property, according to Booty.

All the affected studios are units of ZeniMax Media, which was acquired by Microsoft for $7.5 billion in 2021, and Bethesda.

Microsoft's Xbox content and services segment reported a 62% jump in third-quarter revenue last month, largely driven by the Activision Blizzard acquisition.

"Grand Theft Auto" maker Take-Two Interactive (TTWO.O), opens new tab said it would shut down two subsidiary studios as part of a mass layoff, Bloomberg News reported last week.

Microsoft previously laid off 1,900 employees at Activision and Xbox at the start of the year. Some developers from Arkane Austin will join other studios and work on projects across Bethesda, the creator of "The Elder Scrolls" and "Fallout" titles.
Servers of the game "Redfall", made by Arkane, will continue to remain online for players.

https://www.reuters.com/technology/microsofts-xbox-shuts-multiple-studios-consolidates-teams-cost-cutting-move-2024-05-07/

4 Likes 1 Share

Re: Microsoft Confirms African Development Center Layoffs But Denies Its Closure by Racoon(m): 7:03am On May 09
Now, the downsizing of its work force is obviously due to the present emerging economic realities which have made it unfavourable for businesses to thrive. Microsoft is technically shutting down operations.

40 Likes

Re: Microsoft Confirms African Development Center Layoffs But Denies Its Closure by Mystic216: 7:03am On May 09
You don’t expect them to blatantly tell you they are shutting down, they will shut down some key points of their operations and let the basic ones to continue running just to save the FG from embarrassment they are into already

1 year after inauguration, this man is yet to attract any foreign investment despite the whole ‘Ajala the traveler’ character he is exhibiting , rather, already existing ones are shutting down. And he think propaganda will always save him. This is 2024. People are wise now except APC supporters

APC and their supporters are the true enemies of this country

49 Likes 1 Share

Re: Microsoft Confirms African Development Center Layoffs But Denies Its Closure by DMerciful(m): 7:08am On May 09
They're leaving. This is just PR stunt

27 Likes

Re: Microsoft Confirms African Development Center Layoffs But Denies Its Closure by Remman(m): 7:08am On May 09
In the end, na only about ten or fifteen staff go remain for maintenance. Companies are suffering financially right now in Nigeria especially when you have to provide your electricity because you need it.

6 Likes 1 Share

Re: Microsoft Confirms African Development Center Layoffs But Denies Its Closure by Goodvibes007: 7:09am On May 09
World economy is slowing down as central and reserve banks tightening policy begins to bite. ADC in Kenya got their own boot sometime last year.

46 Likes 4 Shares

Re: Microsoft Confirms African Development Center Layoffs But Denies Its Closure by SeeWahala: 7:21am On May 09
APC media crew / agbad0rians want to whitewash it

microsoft sacked all its workers and is closing down its operations

What part of that sentence above is incomprehensible to you corn munching lots to understand? undecided

9 Likes 3 Shares

Re: Microsoft Confirms African Development Center Layoffs But Denies Its Closure by Hakeem66: 7:27am On May 09
They are leaving, we don't need an interpreter to explain every detail to us; the Nigerian government is aware of this. They should understand that investors are facing challenges in the country, sending a clear warning to others planning to come. We are suffering in this country due to the wrong decisions of a few individuals. I say 'few' because I believe that the 8 million plus votes Tinubu got were manipulated or exaggerated.

10 Likes 1 Share

Re: Microsoft Confirms African Development Center Layoffs But Denies Its Closure by Ogonimilitant(m): 7:27am On May 09
Criminals
Re: Microsoft Confirms African Development Center Layoffs But Denies Its Closure by PlasmaTV: 7:28am On May 09
Yarimo
Helineus
MannaBBQ

Come and defend your failure

14 Likes

Re: Microsoft Confirms African Development Center Layoffs But Denies Its Closure by kennyz247(m): 7:28am On May 09
All ds one na grammar, closure is inevitable

High cost of gas and petroleum
High cost of electricity
High tax from the useless government
Unnecessary bank charges
Insecurities everywhere
All these factors are enough for any sane company to run like Usain Bolt out of this human zoo call Nigeria..

8 Likes 3 Shares

Re: Microsoft Confirms African Development Center Layoffs But Denies Its Closure by Brendaniel: 7:28am On May 09
Kusu12:
Obirodent miscreants will disagree as usual since they are allergic to good news. Losers!

usecondom:
A lot of Nigerians actually want the country to fail. It's sad.


richeeyo:

It's world wide, stop talking trash


Konquest:

A lot of global downsizing is going on in the Tech space to maximize returns for investors, so this isn't new.

The relentless propaganda and fake news going on about the complete shutdown of Microsoft operations in Nigeria must be dealt with accordingly by bringing those responsible for manipulating the original story of the layoff of the Microsoft Engineering staff to justice. It has become common for a group of well-known disgruntled people to use half-truths and fabricated news to mislead the public so as to taunt those in government.


Goodvibes007:
World economy is slowing down as central and reserve banks tightening policy begins to bite. ADC in Kenya got their own boot sometime last year.


You people should not deceive yourselves, all the other companies that have ran away since 2023 till date is it because of the global economy meltdown?

The ones that have been in Nigeria for over 50 years nko that had to pack up is it also for the same reason?

Are you trying to say in more than their 50 years in Nigeria that the world never experienced the same or even worse economic meltdown that should have forced them to leave Nigeria as they are doing now?

You guys will vote in nonsense into office and expect the nonsense to make sense, then begin to blame the world economy for the nonsense that is not making sense...

13 Likes

Re: Microsoft Confirms African Development Center Layoffs But Denies Its Closure by Agbadocassava: 7:29am On May 09
AI is taking people’s job

1 Like

Re: Microsoft Confirms African Development Center Layoffs But Denies Its Closure by Konquest: 7:29am On May 09
adamusuleiman1:
Contrary to several local reports, Microsoft has not shut down its African Development Center (ADC) in Nigeria. According to a Microsoft spokesperson, the Lagos facility is still operational.

During a call with Techpoint Africa, the spokesperson clarified that while the engineering team at the African Development Center in Lagos has been let go, the Microsoft office in Nigeria remains operational.

Although the exact reasons for the changes are not specified, the company said, "Organisational and workforce adjustments are a necessary and regular part of managing our business. We will continue to prioritise and invest in strategic growth areas for our future and in support of our customers and partners.”

It's worth noting that Microsoft has been implementing workforce adjustments and organisational changes since 2023 to align with global market conditions and meet customer needs.


In July 2023, the tech giant initiated layoffs, supplementing the 10,000 job reductions announced earlier in January of that year. Microsoft's continuous drive to streamline its operations and concentrate on strategic growth sectors necessitated these workforce changes.

Microsoft set up its African Development Center in Lagos, Nigeria, and Nairobi, Kenya, in 2019 to expand its engineering talent pool, focus on student and community engagements, and invest in Microsoft programmes.

The company emphasised its commitment to training, equipping, and hiring engineering talent in Nigeria and West Africa. These efforts were aimed at helping to develop Microsoft products that are used by over 1 billion devices, empowering millions of users and organisations globally to achieve more.

However, despite operating for five years, employing at least 120 engineers and more than 200 total staff members, the company has decided to part ways with the engineering team.

Meanwhile, local news reported that affected employees are set to receive salary payments until June 2024 and will still be covered by health insurance.

As Microsoft lays off the engineering team, the future of its African Development Center in Lagos hangs in the balance. With the core team gone, questions arise about the facility's continuation.

Speculation is rife about whether Microsoft will shutter its operations in Nigeria or consider AI-driven alternatives. However, indications point to the former, particularly in light of recent developments. On May 7, 2024, Microsoft’s Xbox announced plans to close several gaming studios, including the renowned Arkane Austin.

While the reasons for this decision remain unclear, it reflects broader economic challenges, such as foreign exchange concerns and unfavourable economic conditions, resulting in the closure of several international businesses across Nigeria.

https://techpoint.africa/2024/05/08/microsoft-adc-layoff-engineering-team-lagos/
A lot of global downsizing is going on in the Tech space to maximize returns for investors, so this isn't new.

The relentless propaganda and fake news going on about the complete shutdown of Microsoft operations in Nigeria must be dealt with accordingly by bringing those responsible for manipulating the original story of the layoff of the Microsoft Engineering staff to justice. It has become common for a group of well-known disgruntled people to use half-truths and fabricated news to mislead the public so as to taunt those in government.

10 Likes 2 Shares

Re: Microsoft Confirms African Development Center Layoffs But Denies Its Closure by richeeyo(m): 7:31am On May 09
Racoon:
Now, the downsizing of its work force is obviously due to the present emerging economic realities which have made it unfavourable for businesses to thrive. Microsoft is technically shutting down operations.
It's world wide, stop talking trash

11 Likes 2 Shares

Re: Microsoft Confirms African Development Center Layoffs But Denies Its Closure by BABAawoo47: 7:33am On May 09
are they not delivering? They should know they are competing woth india and chinese and those ppl take work like do or die affair. They have no other reason to live except work. No be to dey chop buffet be koko

1 Like

Re: Microsoft Confirms African Development Center Layoffs But Denies Its Closure by HighQue007: 7:36am On May 09
Reading comments makes me wonder why people wants Nigeria to fail so much. Imagine that Obi that went to jump on an unconfirmed news to score cheap points as usual. What is the desperation about really? His criticism is getting stale and unnecessary just like his attack dogs.

Even though the PDP is not providing good opposition. The LP should be creative and critical about their opposition so it doesn’t get too stale. Jumping on every topic reeks of desperation.

10 Likes 1 Share

Re: Microsoft Confirms African Development Center Layoffs But Denies Its Closure by HypocriticalObi: 7:38am On May 09
Bitter Peter girigory Obi is a criminal

37 Likes 1 Share

Re: Microsoft Confirms African Development Center Layoffs But Denies Its Closure by HypocriticalObi: 7:39am On May 09
Racoon:
Now, the downsizing of its work force is obviously due to the present emerging economic realities which have made it unfavourable for businesses to thrive. Microsoft is technically shutting down operations.
Bitter grieving Obi is a saboteur

31 Likes 1 Share

Re: Microsoft Confirms African Development Center Layoffs But Denies Its Closure by usecondom(m): 7:40am On May 09
A lot of Nigerians actually want the country to fail. It's sad.

12 Likes 1 Share

Re: Microsoft Confirms African Development Center Layoffs But Denies Its Closure by CorperKola: 7:41am On May 09
Mystic216:
You don’t expect them to blatantly tell you they are shutting down, they will shut down some key points of their operations and let the basic ones to continue running just to save the FG from embarrassment they are into already

1 year after inauguration, this man is yet to attract any foreign investment despite the whole ‘Ajala the traveler’ character he is exhibiting , rather, already existing ones are shutting down. And he think propaganda will always save him. This is 2024. People are wise now except APC supporters

APC and their supporters are the true enemies of this country
Even apc supporters are wise
Re: Microsoft Confirms African Development Center Layoffs But Denies Its Closure by Joey4321: 7:42am On May 09
Just coming to this thread to read comments.

I have understood why its easy to fool majority of Nigerians even when you under perform as a leader

Because at the end, all the people do is to blindly follow their leaders by tribe...

If I am from a certain tribe, I can be as f00lish as I want, because I know my tribe people will support me for free.


The dumber the tribe the thicker the support.

1 Like

Re: Microsoft Confirms African Development Center Layoffs But Denies Its Closure by jmoore(m): 7:43am On May 09
If your father was among those sacked by Microsoft, would you like it?

Layoff or closure, some people lost their jobs.
Re: Microsoft Confirms African Development Center Layoffs But Denies Its Closure by Konquest: 7:47am On May 09
Goodvibes007:
World economy is slowing down as central and reserve banks tightening policy begins to bite. ADC in Kenya got their own boot sometime last year.
True that.

2 Likes 1 Share

Re: Microsoft Confirms African Development Center Layoffs But Denies Its Closure by benuejosh: 7:49am On May 09
Where is Peter Obi.

That man na lord lamba. And him followers love lamba.

3 Likes

Re: Microsoft Confirms African Development Center Layoffs But Denies Its Closure by dfrost: 7:50am On May 09
It's still the same. Lay offs and increased pressure on the labour market
Re: Microsoft Confirms African Development Center Layoffs But Denies Its Closure by dfrost: 7:51am On May 09
jmoore:
If your father was among those sacked by Microsoft, would you like it?

Layoff or closure, some people lost their jobs.

Exactly 💯

1 Like

Re: Microsoft Confirms African Development Center Layoffs But Denies Its Closure by johnjose68: 7:51am On May 09
adamusuleiman1:
...

The funny part of all this:

Onwubuasi will loose in 2027.
Jagaban will win in 2027

We then will see if the bitter Obi will continue to sink old skul lapel borehole and grant press releases to his gullible fan and headless mob...the fascist grin

We will then see if fan of the man that gets his ideas from mad men will still have the energy to continue to troll online....

Because by then, na north go don assume power for another 8 years....after which na south south for 8 years...then north....then south west grin cheesy grin

These people go commit suicide oooo.

Wait...where is the sheppopo ezekwesilly. It's been long time we hear from Mmesoma's mother grin

Wait again...it's been long time Onwubuasi gave condolence messages to his bitter fans...are they playing.

3 Likes 1 Share

Re: Microsoft Confirms African Development Center Layoffs But Denies Its Closure by Angelfrost(m): 7:56am On May 09
These ones don already comot... dem just dey use grammar to cover up.

1 Like

Re: Microsoft Confirms African Development Center Layoffs But Denies Its Closure by GloriousGbola: 7:58am On May 09
anyone who actually follows tech news will have noticed that they are laying off and shutting down right left and centre

https://www.analyticsinsight.net/layoffs/surging-tech-layoffs-2024-what-can-be-the-possible-reasons

https://techcrunch.com/2024/05/07/tech-layoffs-2023-list/

[quote author=adamusuleiman1 post=129859819][/quote]


the gaming community is particularly incensed by the microsoft layoffs
microsoft bought most of these studios a year ago [they are under betheseda softworsk] and is now shuttering them

one of the studios [tango gameworks] produced a game hi-fi rush which was a critical and commercial hit - yet Microsoft is still shutting it down . they finally bought over betheseda last year and now they are putting down studios under bethesdea

at this rate, they may even shut down id software. since only their execs know the method to the madness

4 Likes 1 Share

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