💼 Exclusive—Why Andela is shedding off 420 'featherweight' developers and what it means for the ecosystem
On September 17, Andela shared the sad news that it is laying off about 420 junior engineers in Nigeria, Uganda and Kenya. The company, which upskills and place talented African software engineers in remote jobs abroad, laid off about 200 developers in Nigeria, 50 in Uganda, and 170 in Kenya.
This announcement has been a long-time coming. Five months ago, Andela started recruiting mid- and senior-level developers directly, without having them go through its Technical Leadership Programme. The reason that was given then, in a statement made available to benjamindada.com, was "to expand the company's business model". With this latest development, Jeremy Johnson, CEO and co-founder of Andela, said the growth trajectory of the company has compelled it to make the strategic shift to strictly focus on senior developers.
Despite having over 1,500 developers, Andela struggles to meet the needs of its clients, who mostly request for senior developers. This is because the majority of those developers are in the D0 programme, Andela's training programme for entry-level engineers. Thus, when it started hiring senior developers directly in May, we submitted that Andela would be better placed to serve their clients if they have more experienced developers aboard.
What does this mean for the developers' ecosystem? Andela did an impressive job with their communications and public relations. They controlled the narrative and evoked support from the community. However, we have cause to believe that the developers were not given heads-up. They were as shocked by the news as the public because they received the memo just 30 minutes before the news broke.
This clearly puts a dent on the narrative has run with so far; building African tech talents. Because with a senior developer, you are not building anything, just plug and play. And that is a good business decision. Consider the 200 junior 'featherweight' devs as sacrificial lambs for business growth. Andela is expected to generate $50 million in revenue this year.
While there are plans to plug the affected developers into companies in Nigeria, they were given a robust severance package (3x of regular salary) and free three months access to Co-Creation Hub workspace.
Going forward, companies will need to guard their senior devs jealously as Andela will be coming for them. That's good senior developers; a beautiful marriage between demand and supply. Junior devs, on the other hand, will need to brace up as the influx of 200 devs into the ecosystem means companies now have a bigger pool of choose from. And as a result, the law of demand and supply will cause salaries to dip.
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