Meta contract termination triggers layoffs for tech company Sama in Nairobi

Kenya-based business process outsourcing firm Sama will lay off more than 1,100 employees in Nairobi after Meta ended a major content moderation and data annotation contract. The San Francisco-headquartered data labelling company confirmed in a statement that it issued a formal redundancy notice on Thursday, affecting 1,108 workers at its Nairobi delivery centre. Most of the affected employees are linked to the discontinued workstream. The layoffs are expected to take effect later this month, in line with Kenyan labour regulations.

The job losses mark a significant setback for Kenya’s fast-growing AI outsourcing sector. The country has positioned itself as a key hub in the global artificial intelligence supply chain. However, the sector remains heavily dependent on a small number of major US tech clients, including Meta. Following the termination notice, Sama said it engaged Meta in an effort to preserve jobs, but those discussions did not reverse the decision.

Company response and legal compliance

“As is standard in our industry, client programmes evolve, and we work closely with our partners to manage these transitions responsibly,” said Annepeace Alwala, Sama’s country lead and vice-president for global delivery. She added that the company’s immediate priority is supporting affected employees and ensuring continuity across its broader operations.

The company also confirmed that the redundancy process complies with Section 40 of Kenya’s Employment Act. The law requires employers to notify employees and relevant authorities before implementing layoffs.

Meta partnership, impact sourcing, and wider concerns

Sama did not disclose the value of the contract, but Meta has been one of its most important clients. The company relied on Nairobi-based contractors to label and moderate data used in training artificial intelligence systems.

The partnership has previously drawn scrutiny from labour rights groups, particularly over working conditions in content moderation and data annotation roles. The latest layoffs are expected to ripple through Kenya’s labour market, especially in digital employment opportunities that have been promoted to young workers.

In recent years, Nairobi has emerged as a leading centre for “impact sourcing”, a model that connects global firms with workers from underserved communities to deliver digital services at scale. Sama has been one of the most prominent players in this ecosystem and positions itself as an ethical outsourcing provider offering living wages, medical cover, and mental health support for employees handling sensitive content.

Support measures and AI labour scrutiny

Sama said it will provide support to affected workers, including counselling and transition assistance. “We recognise the significant impact on the team and the local community,” Alwala said.

The development raises broader concerns about Africa’s role in the AI value chain, where firms like Sama supply the human labour that underpins machine learning systems used by global tech companies.

Despite the layoffs, Sama said it will continue focusing on data annotation and model evaluation services, while maintaining its commitment to data security and responsible AI. The Meta contract had been one of its largest operations in Nairobi, supporting a significant portion of its workforce, including annotation work linked to Meta’s AI-enabled Ray-Ban smart glasses.