IHS Towers, one of the largest independent owners, operators and developers of shared communications infrastructure in the world, has laid off over 100 employees due to financial challenges in Nigeria, its key market.
The cuts, which spanned multiple departments, primarily impacted senior staff members and those within the network surveillance team.
The economic instability in Nigeria is one of the factors that led to these layoffs. The currency devaluation in the country has severely affected the company’s revenues and increased its financial losses.
In 2023, IHS Towers reported a loss of $1.9 billion, 304% increase from the previous year’s losses. This financial downturn has been a source of concern for investors, particularly following a $409 million loss in the fourth quarter of 2023.
Nonetheless, IHS Towers has maintained that the decision to lay off employees was not related to performance issues but was necessitated by the economic situation.
Per TechCabal, the company has not issued an official comment on the layoffs, but sources report that affected employees received severance packages, recognising their long tenure and contributions to the company.
IHS Towers, which operates over 40,000 towers across Africa, including more than 16,700 sites in Nigeria, is key in the continent’s telecommunications infrastructure.
However, rising operational costs, including an $88.8 million expenditure on power in the first quarter of 2024, have weakened the company’s finances. Added to this, the volatility of Nigeria’s foreign exchange market has further complicated its financial outlook.
The company is currently being investigated by investors, particularly concerning its financial management and cash flow usage. A shareholder’s letter in June 2023 revealed the lack of transparency in the company’s financial statements, particularly regarding its investment activities.
IHS Towers’ stock has seen some recovery, with shares trading at $3.56 in August, up from a low of $2.98 in July. However, this is still far below the company’s share price of $21 during its peak in 2021, showing the huge financial challenges it continues to face.
IHS Towers is still focused on its operations in Nigeria, where it began its journey in 2001. The company continues to support the country’s digital economy through its network of towers, which are leased to major telecom operators like MTN and Airtel.
