Tech Industry Faces Layoffs: Impact on African Talent and 2023 Outlook

 Spotify technology says it is planning layoffs as soon as this week to cut costs, joining the likes of Alphabet Incorporated, Amazon and Microsoft, which have cut thousands of jobs recently in the Collins-Onewet-Boot-Chermen of Signal Alliance Technology Holdings, joins me to discuss the impact of these cuts on the fate of African talent and 2023 outlook for the tech sector. Collins, thank you so much. Pleasure to have you on the show today. Let's get right to it. What you make of this global cuts, job cuts, in the tech industry? I think the global tech industry has had a good run for the past three years. This part of the fight of the world went to a global pandemic. During COVID, it was good for the tech industry. They hired to ramp up a ramp up capacity because the demand to move things to the cloud, the demand to provide services to Apple, I would hold up at home. But the economy has since cooled down. COVID is a global economy has cooled down. Sorry, but we always knew, was it always dead? The science said this period was going to happen because it was for a specific reason, the COVID pandemic and that demand that we saw then, and now it's gone. I think someone expected it. The good times will last forever, but they never last forever. The world has gone through a cycle and we're going through a cycle now. It's not, I don't think everybody is laying off first of all. I think Apple has a global problem. I think someone just had too much fighting in their hiring and they're just reducing the fight they have. It's not as if that business is that too bad for them. Because some of the macro-derms global surveys change, some of them are reacting to what the investors are demanding. They're saying that the world is laying down, the economy is laying down. So love as much as you can so that you don't miss your, maybe profit for customers. Is there a little bit of a bandwagon effect also? I saw a CABCD doing it, perhaps I should do it too, just to be on the safe side. Just being the safe side, yes. And a fact that really the economy is putting pressure on a lot of companies, this is to trim down their costs. Now for Africa, we knew a lot of African talent, who turned to this big global tech machine, working remotely from African other parts for these global tech companies. What does this mean for those talents? We knew that also African tech companies were here. We have a couple of green unicorns at the moment and some are still trying to get on board with that size, of course, and then with the start-up item, all of that. So it was meant to be the next big wave from a job opportunity, a perspective for Africa's team of youth. Any reports, should we expect any of your art circumstances are absolutely different from what we're seeing in with the global tech companies? I think for those who are in Africa and working for global tech companies, they're going to be like a very rare person. If Amazon caught up 16,000 stuff also, but overall that was about 1% of their costs, so they're their staff strength. So I'm not sure, it's, didn't caught 10%, they didn't caught 20%, just 1%. So I'm not sure that we should panic too much about that. If you are working from here, it will affect a few people, if you're working from here, because if one is cutting what you have, although one is slowing down in hiring, so if there's a slow down in hiring, it's going to affect those who want to get new jobs. But those who are already hired, I mean if it's 1%, you should be unlucky to just be bothered to work 1%. I think why we should already be this about local companies here. If your economy is suffering, it's going to affect everybody eventually. For some of the start-up companies that were growing very fast during COVID, either are growing because they were raising money to grow, and the funding market is also slow down, and then all is in addition, I mean I think they should just prepare themselves to grow without funding, and that means some of them have to call their staff to measure that they keep running till they get the necessary. We have less than two minutes now. What do you see on the horizon for tech industry in Africa, particularly in Nigeria for 2023? I think we should order about economy and Africa. The economy is growing tech is going to grow to ensure that it services the economy. So I think that everybody should be conscious of what is happening. The economy locally in Nigeria here, the economy hasn't done too well in the past three years. I hope that another one of an election may be in new government comes in, maybe the economy can pick up, and perhaps it can boost the performance of tech companies. Point of innovation, are you excited? Should we be excited in terms of what we can, because we know a number of them are making, producing African solutions to African problems. Can we expect more of that this year? I think especially the companies that are young, they should be conscious of the funding, what is happening in the funding market where funds are not as available as they were a few years back, and make sure that they're able to last during this period, even if they don't get funding. But it's a circle. The circle always comes back and there may be things we improve and then they will do much better. But everybody should be conscious that funding is a dry, rupee bit, and all those who need funding are more conscious of the way they're wrong without getting their funding on. Not businesses usual. A colleague is a new way with chairman of Signal Alliance Technology holding.

Spotify Technology says it is planning layoffs as soon as this week to cut costs, joining the likes of Alphabet Incorporated, Amazon.com and Microsoft which have cut thousands of jobs recently. Collins Onuegbu, Founder of Signal Alliance Technology Holding joins CNBC Africa to discuss the impact of these cuts, the fate of African talents and 2023 outlook for the tech sector. 

Big techs lead layoffs

Spotify Technology says it is planning layoffs as soon as this week to cut costs, joining the likes of Alphabet Incorporated, Amazon.com and Microsoft which have cut thousands of jobs recently. 

Big techs lead layoffs

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