Data annotation company Sama, which provides training data for artificial intelligence (AI) systems, has issued redundancy notices to 1,108 employees at its Nairobi office following the termination of a major contract by Meta.
The layoffs, set to take effect later this month, will largely affect workers attached to the discontinued workstream, underscoring the vulnerability of Kenya’s fast-growing outsourcing sector to shifts in global technology demand.
Sama employs thousands of workers in digital tasks such as image and video labelling and has built a significant presence in Nairobi as part of Kenya’s emergence as a hub for outsourced AI support services.
The company said it had engaged Meta in an attempt to retain the contract and protect jobs at its Nairobi delivery centre, but noted that the discussions were unsuccessful, forcing it to initiate the redundancy process.
‘As is standard in our industry, client programmes evolve, and we work closely with our partners to manage these transitions responsibly,’ said Sama Country Lead and Vice President for Global Delivery Annepeace Alwala.
‘Our immediate priority is supporting our employees through this change and ensuring continuity across our broader operations,’ she added.
Contract risk
The job cuts highlight the concentration risk faced by outsourcing firms that rely heavily on a small number of large international clients for revenue, particularly in the AI data services segment.
The development also comes at a time when global technology firms are reassessing costs and restructuring operations amid shifting demand for digital services and advances in automation.
Kenya has in recent years attracted global firms offering content moderation, data labelling and machine learning support services, leveraging a young, English-speaking workforce and relatively lower labour costs.
This has seen Nairobi emerge as a key centre in the global AI value chain, with companies such as Sama employing thousands of workers to handle data-intensive back-end tasks for major technology firms.
The sector has, however, faced scrutiny over working conditions and job security, with roles often tied to specific contracts that can be scaled down or terminated with little notice.