SA has to date managed to avoid mass layoffs in its technology sector and sidestep the kind of labour crisis unfolding in the US and Europe. However, market analysts warn that the southern African country remains highly exposed through multinational firms with a local presence and via regional capital flows that impact hiring and expansion plans.
RationalFX, a personal finance and trading education platform, released data based on aggregated layoff announcements. The data was sourced from official US WARN Act notifications, the job portal TrueUp, TechCrunch and the Layoffs.fyi tracker.
The latest figures show that at least 166 387 employees in the global tech sector have been laid off since the beginning of the year. American companies have slashed over 118 000 positions, or roughly 71% of all announced layoffs by tech firms around the world. The most significant mass layoffs this year come from tech giants Intel (33 900), Microsoft (19 215) and TCS (12 000).
Alan Cohen, data analyst at RationalFX, says while the platform doesn’t have SA-specific figures, there are ripple effects of the global technology downturn across Africa – especially in Nigeria.
Nigerian companies, including e-commerce firm Vendease, commerce infrastructure business Sabi, fintech Okra and HR tech firm Bento, have all laid off personnel.
These reductions point to broader pressure in Africa’s tech ecosystem, especially in venture-backed companies facing tighter funding conditions.
Technology market pundit and World Wide Worx MD Arthur Goldstuck adds: “South Africa has avoided the bloodbath we’ve seen in the US and Europe, but it’s not immune. Local offices of multinationals tend to absorb cutbacks, and the bigger risk is the knock-on effect on local hiring and expansion. The flip side is that we still have a massive skills shortage in this country and the need to fill roles will further cushion this country.”
While local offices of multinationals aren’t big enough to see tens of thousands go, when head offices restructure, local branches feel it, Goldstuck continues, "usually through freezes on hiring, reduced budgets or a shift in priorities rather than mass retrenchments".
He adds: "It's no surprise to see Nigeria hard hit. Nigeria is Africa’s most VC-exposed market, and when global funding tightens, start-ups there are first in line for layoffs. It’s a clear warning signal for the wider continent.”
Goldstuck explains that forces like scarce venture capital and fragile business models are at work across Africa.
“South Africa has stronger fundamentals, but the start-up space is still vulnerable, where it depends on foreign investment. If global capital flows slow further, local hiring and growth plans will suffer.”
AI impact
The research also shows that AI has influenced staff management practices by major firms, including IBM, Salesforce, Meta and Oracle.
RationalFX claims IBM is using AI to automate tasks previously done by HR personnel, such as handling employee enquiries and analysing spreadsheets. So far in 2025, IBM has laid off around 9 000 workers.
The research platform adds that in February, Salesforce started trimming positions while simultaneously hiring for its AI projects, most notably the Agentforce platform.
Around 1 000 employees were affected, but the replacement of employees by AI did not stop there. In September, the company laid off around 4 000 workers.
Cohen says: “Larry Ellison’s Oracle is among the latest tech companies to focus its business on cloud technology and AI. In August and September, the software giant laid off more than 3 000 employees as part of this strategic shift, with the news reportedly brought to some workers via 20-minute Zoom meetings.”
Goldstuck adds: “Companies are already cutting people and slotting AI into their place, but few will say it out loud. At the same time, we will see new categories of work emerge around AI, from training systems to managing ethical risks, but the pace is uneven. The bigger problem is that most businesses are still built on old hierarchies and outdated roles. They’re top-heavy with jobs designed for a pre-AI era, which makes the immediate impact of automation feel harsher than the long-term benefits.”
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