Telecommunications infrastructure provider IHS Towers has laid off over 100 employees following a massive $1.9 billion loss in 2023, a 304% increase from the previous year’s losses. The financial downturn was largely driven by the devaluation of the Nigerian Naira and subsequent foreign exchange (FX) losses, which heavily impacted the company’s profit margins.
The layoffs, which affected several departments, primarily hit senior staff and the network surveillance team. According to reports from TechCabal, many of the senior employees had been with IHS Towers for over a decade and were provided with substantial severance packages.
IHS Towers clarified that these layoffs were a strategic response to the challenging economic conditions rather than a reflection of employee performance. The company has faced increasing pressure from investors since 2022 due to its deteriorating financial performance.
In June 2023, one shareholder raised concerns over $1.5 billion in cash used for investment activities, as highlighted in the company’s cash flow statements. The mounting losses were exacerbated by a $409 million hit from the naira’s devaluation in the fourth quarter of 2023, which led to significant FX losses due to US dollar loans.
Despite a slight recovery in its share price to $3.56 in August 2024, IHS Towers’ market capitalization has plummeted to $1.3 billion, a far cry from its $6 billion valuation in 2021 when shares traded at $21.
As one of Africa’s largest telecommunications infrastructure providers, IHS Towers operates over 40,000 towers across the continent, representing about 25% of the region’s tower infrastructure. The company leases its towers to major telcos like MTN and Airtel, playing a key role in Africa’s digital economy.
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