Tala is cutting part of its Kenya workforce as the digital lender reorganizes its global operations. The company has now confirmed that 7 employees have been notified of potential redundancies, representing less than 10% of its 85-person Kenya team.
As per a statement released by the company, it has just started a consultation process and final decisions have not yet been made.
The cuts are driven by a shift toward centralizing functions at its global headquarters, which makes some local roles redundant. Tala is also moving toward an “embedded services” model, where its credit products are bundled into partner platforms like insurance, device financing, or motorcycle loans, rather than being sold directly to customers.
READ: Tala Disburses Over 3.5 Million Loans in Kenya Worth KES 240 Billion
This means the company leans on partners for marketing and customer acquisition, reducing the need for a large local headcount.
When Techweez asked whether Kenya was being considered as a potential hub for the centralized functions, Tala said it was too early to say how roles would be divided between Kenya and its Santa Monica headquarters, noting that the process had only just begun.
On the question of cost savings, Tala was direct, reiterating that this is not a cost-cutting exercise but a strategic realignment toward its long-term plans.
If you’re wondering whether Kenya is being deprioritized, Tala pushed back on that reading. The company told Techweez that Kenya is actually the least affected market in this round, with only 7 employees notified so far, and that the number could still reduce as negotiations continue.
Given that AI has been widely blamed for tech layoffs globally, we also enquired whether Tala had increased its use of AI across its operations over the past two years. In response, the company said it continues to integrate AI across departments, as most companies are doing, but has no plans to replace its workforce in favor of AI.
This is not the first time Tala has done this. About a year ago, the company laid off 28 employees from its customer operations team, which it said represented about 3% of its workforce at the time. The latest round, while smaller in absolute numbers, is proportionally larger.
Tala has not said which specific roles are affected.
Tala’s announcement also comes shortly after Samasource, an AI data and annotation company based in Nairobi, laid off 1,108 workers after losing a major contract with Meta. That was one of the largest single-round tech layoffs Kenya has seen.
Over the past two years, Kenyan workers have also been caught in broader cuts by Microsoft, Google, and Meta, with AI frequently cited as a factor reshaping how these companies are structured.
READ: Microsoft Slashes 9,100 Jobs in Biggest Layoffs Since 2023
Tala insists the reorganization will not affect its operations in Kenya, meaning it plans to keep serving customers here even as it reduces staff.
