Majorel lays off 200 employees following Meta contract loss
NAIROBI, KENYA — Business Process Outsourcing (BPO) firm Majorel has begun the process of laying off 200 employees in its Nairobi office. This development comes after the company lost a content moderation contract with social media giant Meta.
In an email exchange with TechCabal, Majorel confirmed that it had notified approximately 200 of its 1,200 staff members in Nairobi about the impending redundancies. The company cited “restrictions” on a client contract for these layoffs.
Although Majorel did not disclose the client’s identity, credible sources, and prior reports indicate that the client is Meta, the social media giant.
Earlier in January 2023, Sama, Meta’s previous content moderation partner in Africa, laid off 260 employees. Of those dismissed, several employees took legal action against the company, alleging unlawful termination.
In response, a court order in March blocked Meta’s new contract with Majorel and temporarily reinstated Sama’s contract.
Majorel also found itself entangled in a legal battle as former Meta moderators, who previously worked with Sama, claimed they faced discrimination when applying for new positions at Majorel.
They argued that this discrimination was based on their past employment with Sama. The lawsuit also includes allegations that Meta pressured Majorel not to employ any moderators previously let go by Sama.
Meta countered these claims, stating that the court does not have jurisdiction over the matter. Despite attempts at settlement in October, the parties could not reach an agreement.
As a result of Majorel’s exit, approximately 200 employees are expected to be laid off by mid-November. Some part-time staff members affected by these layoffs might receive only one month’s severance pay instead of the standard three months, leading employees to contemplate further legal action over disputes related to severance pay.
In addition to layoffs, Majorel is transferring some of its staff to its Mombasa office. However, employees expressed concerns that the $134 relocation allowance provided by the company is inadequate, raising concerns that this may lead to additional resignations.
This situation underscores the broader challenges associated with outsourced content moderation. Workers in this field are exposed to graphic content and face numerous risks.
This prompts some experts to recommend social media companies improve their content moderation strategies or consider bringing them in-house to address these challenges better.
