Andela, a software development outsourcing company, announced on Tuesday it's laying off up to 400 junior engineers and staff in Uganda, Nigeria and Kenya.
The company said it will now restructure to work with more experienced engineers to align with the global market demand. Andela, whose local office is based in Kamwokya, distributes software developers to different tech companies, including Facebook, and Google. The company is paid and then it pays the developers.
Jackie Ochola, the Uganda country director, said their priority now is to support all of the team members affected by today’s news, both directly and indirectly. It is not clear how many are from the Uganda office. She added that the changes will make the company more sustainable going forward.
This is a blow to the young people that have been the company’s main target for training. One didn’t have to have any prior training in IT to be trained as a software engineer.
Jeremy Johnson, Andela co-founder and CEO, said: “As the talent world has evolved, we have as well, and over the past few years it’s become increasingly clear that the world needs what Andela provides: high-quality engineering-as-a-service.”
He added that “It has also become clear, however, that the majority of the demand is for more experienced talent, and to keep up with it, we need to grow our senior talent base even faster.”
The laying off of staff could be an indicator that the company is finding it had to raise money for it to train the less experienced developers. Andela is headquartered in New York.