African technology companies cut a record 2,574 jobs in the first half of 2026, which indicates a 236 percent increase from a year earlier, as artificial intelligence adoption, banking consolidation and cost-cutting measures reshaped the continent’s employment space.
This is according to TechCabal Insights’ State of Tech in Africa H1 2026 report, which found that layoffs reached an all-time high during the first six months of the year, up from 1,196 recorded in H1 2023, reflecting a structural shift rather than isolated company-specific challenges.
Artificial intelligence emerged as one of the biggest drivers of workforce reductions, with startups replacing routine human tasks with automated software.
Companies including Jumia, Zap Africa and Egypt’s Breadfast reduced technology, product and marketing teams as AI tools took over operational workflows previously handled by employees.
Jumia cut about 200 jobs after deploying artificial intelligence tools to automate traditional operational processes, while cryptocurrency exchange Zap Africa laid off 44 percent of its workforce after integrating Martha AI to manage customer support.
