This archive report was first published on 7 May 2020.
Published on May 7, 2020, Andela has announced a significant restructuring effort in response to the economic challenges posed by the COVID-19 pandemic.
The company plans to lay off 10% of its workforce, which translates to 135 employees across four locations. Notably, Rwanda and Ghana were spared from this round of layoffs.
According to Andela, all affected staff will receive a comprehensive severance package, including health coverage for a period of four months. Additionally, the company is considering salary cuts across the board and suspending future hires to stay afloat during the pandemic.
As part of its cost-cutting measures, Andela's board of directors will take salary cuts ranging from 10% to 30%, depending on seniority. The company aims to save $25 million by reducing operational costs, in addition to the $5 million expected from the layoffs.
Andela's decision to lay off employees is not its first major restructuring effort. In September 2019, the company announced the departure of 170 junior engineers and staff from its Kenyan hub, affecting an additional 250 employees from the Nigerian and Ugandan hubs.
Launched in 2014, Andela operates in six countries, including Nigeria, Kenya, Rwanda, Uganda, Egypt, and the United States. The company secured $40 million in series C funding in 2017 and $100 million in Series D funding in January 2019 to fuel its expansion in Africa.
