Layoffs in Egypt

SWVL, a Dubai-based mass transit and mobility services provider, has conducted a second round of layoffs, cutting 50% of its remaining workforce in November 2022. This follows an earlier reduction six months prior, where over 400 employees (32% of the workforce) were let go. After these cuts, the company's headcount dropped from over 900 to just over 450 employees. The layoffs, affecting teams in Dubai and Pakistan, are part of a broader effort to achieve positive cash flow and reevaluate operations in smaller markets, with reports indicating a complete shutdown in Pakistan. The company, which expanded rapidly through acquisitions across 20 markets, is now scaling back due to economic challenges and overexpansion.

In September 2022, Egyptian B2B e-commerce startup Capiter, which had raised a $33 million Series A round a year prior, faced severe turmoil. The company laid off at least 100 employees between June and July, representing a significant portion of its workforce, as it struggled with financial mismanagement and a rapidly dwindling runway. Concurrently, the board fired the CEO and COO, citing their inability to fulfill duties, failure to report during due diligence for a potential merger, and alleged fund mismanagement. Operating in the competitive African B2B retail and fintech space, the once high-flying startup, which had aggressively hired to reach ambitious targets, was left seeking a buyer to salvage the business amid a broader global downturn affecting tech startups.

SWVL, an Egypt-born, Dubai-headquartered mobility startup, announced plans on May 30, 2022, to lay off approximately 32% of its workforce, affecting around 400 employees out of a total of over 1,330. This significant downsizing comes just two months after the company went public via a SPAC merger, targeting a $1.5 billion valuation, though its market value had since fallen to around $500-$600 million. The layoffs are part of a broader cost-cutting trend in the tech industry, driven by economic downturn pressures and valuation corrections. Despite recent acquisitions, including a $100 million purchase of Zeelo, SWVL cited the need to streamline operations and reduce roles automated by engineering investments as reasons for the workforce reduction.