This archive report was first published on 22 September 2019.
Andela, a US-based company that has been instrumental in building digital skills capacity in developing countries, has announced a significant shift in its operations. The company has laid off 400 staff, with 170 employees from Kenya among those affected.
The decision to cut 25 per cent of its labour force was made in response to changing demand in the global labour market for software engineers. According to Andela's Chief Executive and co-founder Jeremy Johnson, the company has evolved to meet the needs of the market, which now demands more experienced talent.
Johnson explained that the majority of the demand is for more experienced engineers, and the company is unable to provide 'authentic work experiences' for its junior talent. This has necessitated letting go of its junior engineers who would otherwise miss out on these opportunities.
The layoffs have received mixed reactions from ICT stakeholders across the affected countries. Some have expressed gratitude at the skills capacity the firm has built in the local sector over the years, while others believe the company is shifting away from its central mission of building digital skills capacity in developing countries.
Andela's decision to lay off its junior talent has also raised concerns about the company's commitment to its mission. The company has been cited as a model for building skills necessary to bridge the digital divide, and its decision to cut off its junior talent may undermine this promise.
According to Prof Bitange Ndemo, a former PS and one of the early proponents of transforming Kenya into a business process outsourcing hub, the move by Andela is another indication of the shifting priorities of US business leaders that have been informed by President Donald Trump.
Dr Ndemo believes that the decision will be painful in the short run but as time goes, the laid-off young workers will find new jobs from international demand for the skills they acquired at Andela. He also emphasized the need for Kenya to utilise the skills of the laid-off workers to solve many of its problems, particularly in the context of the fourth Industrial Revolution.
