Over the past two months, the global economic downturn has forced tech companies across the globe to lay off significant numbers of their workforce. In fact, over 15,000 tech workers lost their jobs in May alone.
Netflix laid off 2% of its workforce—about 150 employees, Swedish buy-now-pay-later (BNPL) company Klarna cut 10%, and tech giants like Meta are applying the brakes on hiring.
Now, the lay-offs may have hit Africa, as Egyptian ride-hailing company, Swvl has announced it would be laying off 32% of its entire workforce, which comes to a significant 400 workers.
The company mentioned that the affected workers hold roles that can be automated; and sources say majority of the layoffs will come from the company’s Dubai and Pakistan offices.
The company has also revealed that top management staff would receive salary cuts while expenses such as travel and overhead costs will be reduced.
According to Swvl’s Chief Financial Officer, (CFO) Youseff Salem, Swvl is making the tough decision in order to “prioritise profitability over growth to ensure that Swvl thrives once we are on the other side of this”.
Swvl’s direction is in line with advice given by tech investors including Y Combinator who advised founders to, “change their plans around spending, runway, hiring, and funding rounds”.
Swvl, whose merger with Queen’s Gambit Growth Capital in April landed it a valuation of $1.5 billion, has since lost more than half of that number and is now valued at $581 million.
