Microsoft staff to receive salaries until June, after closure of $100m ADC

Microsoft has officially addressed the shutdown of its Africa Development Centre (ADC) West Africa, located in Lagos, Nigeria.

This brings an end to the six-year-old establishment. 

This move comes after Techeconomy reported on the exclusive plan of Microsoft to close down ADC, which encompasses engineering and communications operations. 

In response to inquiries, a Microsoft spokesperson provided a statement to Techeconomy on Wednesday, stating, "Organizational and workforce adjustments are a necessary and regular part of managing our business. 

"We will continue to prioritize and invest in strategic growth areas for our future and in support of our customers and partners." 

The affected employees may receive salaries until June and retain access to their health insurance, according to the statement. 

The source also noted the ongoing trend of tech companies laying off employees amid what they term the "AI war." 

Microsoft's $100 million Africa Development Centre (ADC) was launched in 2019, with offices in Kenya and Nigeria, aiming to recruit 100 full-time engineers by the end of the year and 500 engineers by the end of 2023. 

The initiative sought to leverage African innovation in sectors such as fintech, agritech, and off-grid energy. Additionally, through ADC, Microsoft intended to collaborate with local universities to develop a curriculum tailored to digital skills like data science, AI, mixed reality, and application development. 

The news of the shutdown has also led to concern among employees in the Kenya office, with calls for clarity on the situation. "Everyone has been moody since Monday when the news filtered in," the source added. 

Microsoft ADC, a $100 million project, was inaugurated in 2019 with centres in Lagos, Nigeria, and Nairobi, Kenya.