Microsoft, a leading multinational technology company has discredited reports of its development centre in Lagos, Nigeria being closed.
According to a company spokesperson, circulating reports alleging the closure of the Microsoft Africa Development Center in Nigeria are incorrect. The facility in Lagos remains operational, despite some local media sources suggesting otherwise.
However, the American multinational corporation has confirmed that the engineering team at the ADC in Lagos has been dismissed. Nonetheless, affected employees will continue to receive salary payments until June 2024 and will retain health insurance coverage.
While the specific reasons for this action were not disclosed, Microsoft indicated in a statement that workforce adjustments are part of its business management strategies.
“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 spokesperson told Techpoint Africa.
Therefore, the closure of the engineering team at the ADC in Lagos is consistent with broader workforce changes at Microsoft which is aimed at optimizing resources and focusing on key growth sectors. The decision is also part of Microsoft’s broader effort to streamline operations and concentrate on key areas of expansion.
Notably, Microsoft has been making organizational changes and workforce adjustments globally since 2023 to better align with market conditions and customer demands. The company’s decision-making is driven by the need to remain competitive and agile in response to evolving market dynamics and economic challenges.
In light of recent developments, questions persist about the continued operation of the Microsoft Africa Development Center in Lagos. However, Microsoft has not confirmed any plans to close its Nigerian operations entirely. The company continues to evaluate its global footprint and make decisions based on market conditions and business priorities.
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About Microsoft Africa Development Center in Nigeria
The Microsoft Africa Development Center (ADC) was established in May 2019 with an ambitious vision of leveraging innovative technologies to make a global impact, beginning in Africa.
Microsoft initiated a search for talented engineers to pioneer work in cutting-edge fields such as artificial intelligence, machine learning, and mixed reality. To demonstrate its commitment, the company pledged a $100 million investment in the ADC during its first five years, underlining its determination to see the centre thrive.
The official opening of the Lagos facility was on March 21, 2022. Marking a significant milestone for Microsoft, the centre has continued to serve as a hub for product engineering, ecosystem development, and innovation.
Integral to the ADC’s mission was the establishment of the Microsoft Garage, an initiative aimed at fostering innovation within Africa’s technology landscape. By opening the ADCs in both Kenya and Nigeria, Microsoft has tapped into the continent’s abundant engineering talent, nurturing local solutions with the potential for global scalability.
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In Nigeria, the ADC played a crucial role in advancing Microsoft’s vision, complementing its Kenyan counterpart. By empowering local engineers, Microsoft sought to develop innovative solutions that would not only address Nigeria’s unique challenges but also have far-reaching global impact and relevance.
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