The company clarified that it is not shutting down all Microsoft operations in Nigeria and “there are no impacts to the Africa Development center in Kenya”.

Meanwhile, Microsoft did not disclose the number of employees in Nigeria that will be affected by the decision regarding ADC Nigeria.

Updated statement by Microsoft made available to Techeconomy reads:

“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.

“Microsoft has decided to close the Africa Development Centre in Nigeria, and as a result some of our employees based in Nigeria will be impacted.

“We will continue to operate in Nigeria, and we remain committed to Nigeria’s transformation objectives, and as such will continue to invest in our business and key growth areas in the region,” – a Microsoft spokesperson, said in a statement available to Techeconomy.

The company also said:

“This is not a site closure.

“We don’t take decisions like these lightly and we are deeply committed to doing everything we can to help our team members through these transitions.

“There are no impacts to the Africa Development center in Kenya”.

Techeconomy published an exclusive report of Microsoft’s plan to shut down ADC, comprising engineering and communications operations.

Microsoft’s decision to shut down the ADC launched in 2022 came as a shock to the members of staff numbering not less than 50, according to an insider source.

While Microsoft has not issued an official statement, the management allegedly informed staff of the potential shutdown.

Affected employees might receive salaries until June and continue to have access to their health insurance.

“Microsoft ADC team is made up of, majorly, engineering and communications team. It is not the entire Microsoft [Nigeria] that is affected”, an insider source told Techeconomy.

“But, this came as a shock, because the Microsoft founder was in Nigeria recently and even promised to invest in some projects. So, the teams are, kind of, confused on what could have prompted the ‘sudden’ action. There wasn’t a kind of grapevine among the staff that something like this was going to happen. Maybe in the coming days the message will become clearer.

“However, a lot of tech companies have been laying off employees since the ‘AI war’ started”, the source said.

In another sign of Africa’s growing importance as a global hub for talent, Microsoft launched a $100 million Africa Development Centre (ADC) 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, Microsoft was betting on African innovation in fields like fintech, agritech and offgrid energy and hopes to tap into them.

Through ADC, Microsoft aimed to partner with local universities that will create curriculum designed for the next wave of digital skills, including data science, AI, mixed reality, and application development.

“There is panic in Kenya office too. There have been calls from the team. They want to know what is happening, but it is difficult to process the situation. Everyone has been moody since Monday the news filtered in”.

Microsoft Axes Four Studios

Not only ADC West Africa, Techeconomy gathered that Microsoft is axing four game studios, including Arkane Austin and Tango Gameworks, reportedly so it can focus on “high-impact titles.”

In fact, Arkane Austin and Tango Gameworks confirmed the shutdowns in posts on Twitter/X.

Arkane Austin was perhaps best known for developing Redfall, a vampire-hunting online shooter that faced numerous negative reviews when it launched last year.

Tango Gameworks is behind Hi-Fi Rush, a well-received adventure title, along with the horror survival series The Evil Within and action title Ghostwire: Tokyo.

Microsoft acquired the studios after buying ZeniMax Media, the parent of Bethesda Game Studios, in 2020 for $7.5 billion.

IGN reports that Matt Booty, Xbox Game Studios head sent an email to staff, explaining that the cuts are “grounded in prioritizing high-impact titles and further investing in Bethesda’s portfolio of blockbuster games.” Booty also noted that Microsoft is shutting down Alpha Dog Studios and Roundhouse Games.

“To double down on these franchises and invest to build new ones requires us to look across the business to identify the opportunities that are best positioned for success,” he wrote. “This reprioritization of titles and resources means a few teams will be realigned to others and that some of our colleagues will be leaving us.”

The shutdown of Arkane Austin means that some of its members will migrate to other Microsoft-owned studios.

Booty also said “Redfall’s previous update will be its last as we end all development on the game. The game and its servers will remain online for players to enjoy and we will provide make-good offers to players who purchased the Hero DLC,” which was never released.

But in other cases, it looks like Microsoft is laying off video game developers. “We will provide our full support to those who are impacted in today’s notifications and through their transitions, including severance benefits informed by local laws,” Booty added.

Microsoft is making the changes as Xbox sales struggles with some estimates projecting that Sony’s PlayStation 5 has been outselling the console by a 3-to-1 margin.

In January, Microsoft also laid off another 1,900 gaming jobs citing the need to create a “sustainable cost structure” for its gaming business.

The learning session held at Microsoft Africa Development Center (ADC) had in attendance media partners from print and online platforms and publications.

The training session provided a platform to introduce journalists to the benefits of Microsoft Copilot and its potential to revolutionize the profession.

Microsoft Copilot is an advanced AI-powered tool which offers a wide array of functionalities designed to streamline workflow, enhance productivity, and elevate the quality of their output.

Through this partnership, 9mobile and Microsoft sought to equip journalists with the skills and knowledge necessary to leverage Copilot effectively in their day-to-day work.

Speaking at the training session, Chineze Amanfo, PR lead, 9mobile, expressed her enthusiasm and satisfaction with the session, emphasizing the company’s commitment to fostering innovation and empowerment within the media industry.

She stated, “We are thrilled to collaborate with Microsoft in providing this invaluable training opportunity for journalists. At 9mobile, we recognize the pivotal role that the media plays in shaping public discourse and driving societal change. Therefore, equipping them with the requisite knowledge and tools such as the Microsoft Copilot, will enhance their capability to deliver on their respective assignments efficiently by disseminating accurate and impactful information to the public.”

“We prioritize our relationship with the media hence, the need for the periodic capacity building session for journalists. With this training, we have clearly demonstrated our unwavering commitment to sustaining the initiative. We will continue to explore new avenues for collaboration and innovation, ensuring that our partners in the media industry have access to the tools and resources they need to thrive, Amanfo added.”

Orimolade Oluwamuyemi, the senior business programme manager, Marketing Communications, Microsoft Africa Development Center, appreciated the participants for their contributions in making the session an engaging experience and enjoined them to champion the message of AI responsibility.

He said, “Microsoft’s Copilot is poised to be a game-changer for journalists. It is a reliable tool for generating and optimising content, staying informed, and enhancing productivity. Our commitment is to harness the transformative potential of AI for societal betterment. Welcome to the future of journalism, working smarter with Microsoft Copilot.”

The capacity-building session received an overwhelmingly positive response from participants, who lauded the practical insights and demos provided.

Attendees expressed their appreciation for the opportunity to familiarize themselves with a tool as powerful and versatile as Microsoft Copilot, acknowledging its potential to revolutionize their workflow and enhance their journalistic endeavours.

With the successful hosting of the capacity-building session, 9mobile and Microsoft look forward to more areas of sustained collaboration to drive positive change and innovation within media ecosystem in Nigeria.