It’s unfortunate to hear about Microsoft considering the closure of its African Development Centre in Lagos. Such a move could indeed have significant implications for Nigeria’s tech industry and its workforce. However, it is important to monitor how this unfolds and how it might impact innovation in the region.
Undoubtedly, Microsoft’s potential closure of its African Development Centre (ADC) in Lagos is a setback for Nigeria’s growing tech sector.
Reports suggest that Microsoft informed staff of the closure plans, although the company has neither confirmed nor denied these reports. If the closure goes ahead, it could have profound implications for job opportunities and innovation in Nigeria’s technological landscape.
How Microsoft Fell Off
The ADC in Lagos was launched as part of Microsoft’s $100 million African Development Centers initiative in 2019, alongside a facility in Nairobi, Kenya. The Lagos center employed over 120 engineers upon its launch in 2022, with plans to expand to 500 engineers by 2023. It was envisioned as a hub for developing innovative technology solutions to address challenges in Africa and globally.
The decision to potentially close the Lagos center is speculated to be influenced by Nigeria’s challenging economic conditions.
While the closure seems to affect only the West Africa operations, with the East Africa facility in Nairobi remaining intact, it nevertheless raises concerns about the future of tech investment and employment opportunities in Nigeria.
Employees at the ADC have been informed that they will receive salary payments until June and will continue to be covered by health insurance.
However, the uncertainty surrounding the closure highlights the vulnerability of the tech industry to external economic factors and corporate decisions. Monitoring the situation closely will be crucial to understanding its long-term impact on Nigeria’s tech ecosystem.
It Doesn’t End There
Microsoft is also shutting down four game studios, including Arkane Austin and Tango Gameworks, to focus on high-impact titles.
Both studios confirmed the shutdowns on Twitter. Arkane Austin, known for Redfall, faced negative reviews, while Tango Gameworks developed titles like Hi-Fi Rush, The Evil Within, and Ghostwire: Tokyo.
These closures follow Microsoft’s acquisition of ZeniMax Media, parent company of Bethesda Game Studios. Additionally, Microsoft’s Africa Development Centre in West Africa is reportedly shutting down, surprising its 50 staff members. Despite no official statement from Microsoft, affected employees may receive salaries until June and maintain access to health insurance. The decision has caused confusion among employees, especially since Microsoft’s founder recently visited Nigeria and promised investment. Similarly, there’s panic among the team in Kenya. This restructuring aligns with Microsoft’s aim to prioritize high-impact titles and invest in Bethesda’s games amid Xbox sales struggles.
Microsoft Shutting Down $100m ADC Lagos, Kenya Centre in Panic Mood
The Consequences Of Leaving
The shutdown of Microsoft’s Africa Development Centre (ADC) in Nigeria and other locations could have several consequences:
1. Job Losses: The closure will result in job losses for the employees working at the ADC. This can have a significant impact on the affected individuals and their families, as they lose their source of income and potentially face financial insecurity.
2. Economic Impact: The closure of the ADC could have broader economic implications, particularly in the regions where it operated. The loss of jobs and investment could impact local businesses and communities that relied on the centre for economic activity.
3. Reputation Damage: Microsoft’s decision to shut down the ADC may also damage its reputation, especially among local stakeholders and the broader tech community in Nigeria and other affected regions. This could impact Microsoft’s ability to attract talent and partner with local organizations in the future.
4. Tech Ecosystem: The closure of the ADC could disrupt the local tech ecosystem by reducing opportunities for collaboration, innovation, and skill development. It may also discourage other tech companies from investing in similar initiatives in the region.
5. Regional Development: Microsoft’s investment in the ADC was seen as a positive step towards promoting technology development and innovation in Africa. The closure could slow down progress in this area and hinder efforts to bridge the digital divide on the continent.
Overall, the shutdown of Microsoft’s ADC in Nigeria and other locations is likely to have far-reaching consequences for both the company and the communities it served.
