Silicon Valley is the epitome of the global tech industry. But even there, tech startups have felt the bite as the COVID-19 wreaks havoc on economies and businesses. The likes of Uber and Airbnb have had to lay-off thousands of workers as they try to survive the debilitating impact of the pandemic.
The trend is the same here in Africa. The last two months have seen several startups left with no option but to send several of their employees home, institute salary cuts and furlough even more.
Layoffs, pay cuts and furloughs
Nigerian startup Andela recently let go of 135 employees, a move the company attributed to the impact of COVID-19.
The Nigerian tech startup Renmoney sent home over 300 of its employees at the end of March citing new technological advancements.
Fintech startup Yoco cut its staff numbers in April. The South African tech firm has also revealed that its executives had agreed pay cuts.
Movie streaming startup iROKOtv has put on notice 28% of its staff who will proceed on unpaid leave this May. It will also cut salaries.
OPay is set to send packing many of its staff at Oride, the startup’s bike-hailing division.
Tough times ahead!
It’s likely just a tip of the iceberg given many more might have taken similar steps but haven’t made it public. The developments come even as reports indicate African startups could lose up to $1 billion in funding due to the impact of the ongoing pandemic on VCs.