Artificial intelligence (AI) has distorted and disintermediated the business model of hiring remote techies from the developing world, for core jobs in many advanced economies. I am not talking of freelancing jobs where you are paid to make a logo for $30. I am talking of being employed in the technical design team of IBM, Cisco and others, at a salary range of $80,000 per year while living in Lagos or Nairobi!

All the leading companies offering remote-tech-placement services in Africa have either changed their CEOs or reduced operations. Simply, as AI penetrates into markets and becomes successful, many business models will be retired.

Have you noticed that the business model of training young people in the developing world to get (remote) software related jobs in the developed world has cooled significantly? Yes, that business model is being disintermediated by artificial intelligence (AI).

Also, have you noticed that adverts to attend coding schools or coding camps have reduced in volume? Yes, the fact that coding is largely becoming  superfluous, as many coders in leading tech companies are coding themselves out of jobs, meaning that companies do not need a lot of them,  coding pipelines will be affected.

I spoke with an amazing US team two weeks ago. The team is building an AI-infrastructure company that will enable say 100 people to support an insurance company where previously you would have needed about 10,000 people! In short, they have a license and can offer insurance infrastructure as a service. We sent them money, and they will be in the Tekedia Capital investment cycle coming up next month. Good People, it is scary because if they execute, jobs would be lost in the industry even as many will make tons of money while improving pricing for customers.

So, over the next few years, we will see a massive re-alignment of jobs and software. Microsoft made some cuts this week and Verizon joined in the game: “The wave of layoffs sweeping through the tech industry has hit yet another major player. This time, it’s Microsoft, which announced on Thursday that it is cutting 650 roles from its Xbox gaming division….Verizon Cutting 4,800 Jobs”.

If you are reading me, I challenge you to have a career plan, not just a job plan, because as AI makes progress, the core essence of most jobs will be questioned. This year, Tekedia Capital will invest in at least 12 AI companies; about 8 in the United States.

 In another startup we have invested in the US, they can use AI to do compliance reviews in biotech (drug discovery), finance (trading) and more.  They can close departments in compliance departments as their products mature.

The wave of layoffs sweeping through the tech industry has hit yet another major player. This time, it’s Microsoft, which announced on Thursday that it is cutting 650 roles from its Xbox gaming division.

The job cuts, primarily in corporate and supporting functions, come as the company continues to streamline operations following its $69 billion acquisition of Activision Blizzard, a gaming juggernaut behind franchises like Call of Duty and World of Warcraft.

These latest cuts mark Microsoft’s third significant round of layoffs in its gaming unit since closing the Activision deal. Phil Spencer, CEO of Microsoft Gaming, acknowledged the difficulty of the decision in an internal memo shared with staff.

“We are deeply grateful for the contributions of our colleagues who are learning they are impacted,” Spencer said, adding that the restructuring aims to “organize our business for long-term success.”

Microsoft said that while some teams will be affected by shifting priorities, no game titles, devices, or experiences are being canceled, and no studios are being closed as a direct result of the layoffs.

“In the U.S., we’re supporting them with exit packages that include severance, extended healthcare, and outplacement services to help with their transition,” Spencer assured, though the severance terms will vary for employees outside the United States.

This round of cuts is part of a broader trend in the tech sector, which has seen a dramatic increase in layoffs over the past two years. While gaming companies like Microsoft, Sony, and Unity have all been forced to reduce their workforces, the challenges extend far beyond gaming.

The broader tech industry is struggling with an economic slowdown, rising interest rates, and post-pandemic shifts in consumer spending patterns. What initially seemed like isolated incidents of downsizing has grown into a much larger movement as companies re-evaluate their long-term strategies in the face of an uncertain future.

Microsoft, despite having made a string of high-profile acquisitions, has not been immune to these pressures. Earlier this year, the company cut 1,900 jobs from its gaming division, only months after completing the Activision deal. In May, the tech giant shuttered several of its gaming studios, including Arkane Austin and Tango Gameworks, although it did not specify how many employees were affected by these closures.

The broader gaming industry has been hit hard. Sony, Microsoft’s key competitor, announced in February that it would lay off 900 workers from its PlayStation unit. The ongoing economic pressures are also visible in other gaming companies like Unity, a software firm, and Twitch, Amazon’s live streaming platform, which have both implemented workforce reductions.

The layoffs are emblematic of a larger downturn in the technology industry. In 2023 alone, tech companies slashed tens of thousands of jobs across multiple sectors—from social media platforms to hardware manufacturers. The mass layoffs at Twitter now rebranded as X under Elon Musk’s leadership, and at Meta, which cut 11,000 jobs, serve as prime examples of the tech industry’s struggle to navigate an increasingly volatile economic environment. The scale of these cuts signals a broader shift away from the rapid growth that tech firms enjoyed during the pandemic.

Verizon Cutting 4,800 Jobs

In a similar move, Verizon Communications Inc. also announced plans to eliminate 4,800 jobs as part of its broader restructuring initiative. The company disclosed a pre-tax charge of as much as $1.9 billion linked to these job cuts, with more than half of the employees affected expected to leave by the end of September, and the rest by March 2025.

The telecommunications giant is also looking to exit certain non-strategic businesses and real estate assets, a move that will incur an additional $230 million to $380 million in pre-tax charges.

The layoffs come at a time when Verizon is pouring billions into building out its fiber-optic network in a bid to secure its future as mobile subscriber growth slows. Last week, the company made its biggest acquisition in over a decade, agreeing to buy Frontier Communications’ fiber-optic assets for $9.6 billion—a deal that also involves taking on Frontier’s debt.

Verizon’s decision to slim down its workforce is part of a growing realization across the industry that the era of rapid expansion, fueled by cheap borrowing and a booming digital economy, may be over. Many tech companies are now facing the harsh reality of declining revenue, rising costs, and fierce competition for consumer attention. The industry’s heavyweights are increasingly being forced to adjust their growth ambitions to match the new economic landscape.

This belt-tightening is likely to continue as tech companies seek new strategies to ensure long-term viability. Verizon, for example, is exploring the sale of thousands of mobile phone towers to raise cash, a move that could bring in over $3 billion, according to Bloomberg.

While Verizon’s recent financial performance has been underwhelming—reporting second-quarter revenue that fell short of analyst expectations due to fewer upgrades of wireless equipment—the company’s stock remains up 15% this year, a small consolation in a challenging environment.

However, the reality for workers in the tech sector is far less rosy. With layoffs continuing across the board, the industry that once promised rapid growth and innovation now finds itself in a period of intense introspection.

In a much-needed move, the Ministry of Housing and Urban Development has joined forces with the World Bank to tackle Nigeria’s land registration woes, aiming to bring order to a chaotic system where over 90% of land remains untitled.

The Ministry signed a landmark agreement with the World Bank to register all land parcels within the next five years, digitize the country’s land records, and formalize transactions to bring the system in line with global standards.

“This is very important to our government as over 90% of land in our country is unregistered and untitled,” explained the Minister of Housing, Arc. Ahmed Musa Dangiwa, during the signing ceremony on September 11, 2024. “Experts estimate a dead capital of over $300 billion. Through this initiative that we plan to implement with the World Bank, we aim to register, document, and title all land parcels within five years.”

The estimated $300 billion in “dead capital” locked up in unregistered land across the country tells the story of immense potential—wasted. Stakeholders, who have advocated land reforms for a long time, believe this new initiative could very well be Nigeria’s lifeline to unlock vast economic growth.

Nigeria’s land registration woes have long been a source of frustration for landowners. Recently, the Lagos State government, Nigeria’s most economically advanced state, added to the urgency of land registration reform by asking landowners to re-register their lands. This development highlights the inherent weaknesses in Nigeria’s land administration framework.

The inefficiencies and inconsistencies of state-level systems have long been bottlenecks in the formalization of land ownership, leaving landowners entangled in endless bureaucracy bottlenecks. Against this backdrop, it is expected that the new partnership with the World Bank will directly address these concerns, offering streamlined solutions that could bring lasting reform.

Dangiwa, in a statement, laid out the ministry’s ambitious plan to register all land parcels across the country within five years. The plan also includes increasing formal land transactions from the current paltry 10% to an impressive 50%, with the introduction of the National Digital Land Information System (NDLIS)—a game-changing tool that promises to finally bring order to Nigeria’s land data, allowing for easier access, registration, and documentation of properties.

For a country grappling with urban expansion, a booming population, and increasing housing needs, this move comes not a moment too soon. With land being a crucial asset, stakeholders in the Nigerian real estate sector have touted the ability to accurately register and title properties as a key step in ensuring that land can be used as a wealth-generating tool, particularly in securing loans and investment opportunities.

Guangzhe Chen, the World Bank’s Vice President of Infrastructure, highlighted the institution’s commitment to helping Nigeria tackle its land challenges.

“We are open to supporting Nigeria in land administration, affordable housing, sustainable financing, climate change mitigation in urban areas, and urban land management,” Chen said during the signing event.

According to Chen, the World Bank plans to leverage successful land registration models from other countries in West and Central Africa to guide Nigeria’s reforms. This expertise will be essential as Nigeria seeks to develop a structured land titling system and provide support for urban planning in vulnerable cities, which are increasingly affected by flooding and rising temperatures.

Ndiame Diop, the World Bank’s Country Director, also expressed confidence in the collaboration, stating that “addressing land registration, with 90% of land currently unregistered, is urgent for the sector’s development.”

Diop confirmed the World Bank’s readiness to provide both financing and technical support to drive Nigeria’s housing and urban agenda, ensuring that the reforms are implemented effectively.

The NDLIS, a critical piece of the plan, aims to revolutionize how land information is collected, stored, and accessed. By moving to a digital platform, land registration could become not only more efficient but also more transparent—reducing the possibility of corruption, one of the current system’s greatest flaws.

State governments, like those in Lagos, will also have a unified system to reference, reducing the inconsistencies and duplications that have plagued land registration processes for decades.

The partnership between Nigeria’s Housing Ministry and the World Bank extends beyond land registration. As Dangiwa explained, another crucial area of collaboration involves urban development and climate resilience.

“We are working with the World Bank on urban livability and developing a framework for systemic barriers in the housing value chain,” he said.

The funds unlocked through better land registration practices—via property taxes, ground rents, and Certificates of Occupancy—could be funneled into urban infrastructure projects designed to mitigate climate impacts, including flooding, which has become a seasonal nightmare for Lagosians.

The housing value chain will also receive much-needed attention, with plans to break down barriers that have long hindered private investment in affordable housing. The Ministry is aiming to attract more investment by streamlining processes and offering incentives for housing development—an initiative that ties into the larger vision of formalizing land ownership.

Can Nigeria Achieve Its Goals?

As lofty as these goals are, the challenges Nigeria faces in achieving them are equally daunting. Registering all land parcels in a country of over 200 million people—where many transactions still happen informally and state-level bureaucracies are often inefficient—will not be easy.

However, many believe the five-year timeline, the World Bank’s technical expertise, state-level partnerships, and the commitment of the Federal Ministry of Housing, if harnessed effectively, will bring the plan to fruition. For landowners in Lagos and beyond, the hope is that this partnership will finally bring clarity to land ownership issues, helping them avoid repeated processes like re-registration.

While this plan offers hope of better land administration, with the potential rewards of $300 billion in untapped capital, many have pointed to the much bigger issue – the Nigerian Land Use Act, which has been fingered as the bane of underdevelopment in the country’s real estate sector. Stakeholders have for long, called for the repeal of the Act, which gives rights to property ownership to the governments.