Sama is set to lay off more than 1,100 employees in Nairobi after Meta moved to terminate a key content moderation and data annotation contract.
The San Francisco headquartered outsourcing firm said it has issued formal redundancy notices to 1,108 workers at its Nairobi delivery centre, most of whom were assigned to the now-ended project. The layoffs are expected to take effect later this month, in line with Kenyan labour regulations.
The development delivers a fresh setback to Kenya’s fast-growing, yet fragile, AI outsourcing sector. While the country has positioned itself as a key hub in the global artificial intelligence value chain, the industry remains heavily reliant on a small group of large U.S. tech clients, leaving it exposed to sudden contract shifts.
According to the company, efforts were made to engage Meta after receiving notice of the termination, but discussions did not lead to a reversal.
“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 focus is supporting affected employees while maintaining continuity across its operations.
Sama noted that the redundancy process is being carried out in accordance with Section 40 of Kenya’s Employment Act, which outlines procedures for layoffs, including notification requirements.
Although the financial details of the contract were not disclosed, Meta has been one of Sama’s most prominent clients, relying on outsourced workers in Nairobi to label and moderate data used in training AI systems. The partnership has previously attracted scrutiny from labour advocates over working conditions tied to content moderation roles.
Beyond the company itself, the layoffs are expected to have broader implications for Kenya’s digital labour market. Nairobi has become a focal point for “impact sourcing,” a model that connects workers from underserved communities to global digital jobs. Sama has been a leading player in this space, positioning itself as an ethical outsourcing provider offering wages, healthcare, and mental health support for workers handling sensitive content.
The company said it will provide support to affected staff, including counselling and transition assistance, acknowledging the wider impact on workers and the local community.
The incident also raises deeper questions about Africa’s position in the global AI ecosystem. Firms like Sama, alongside contractors working for major AI developers, supply the human labour required to train machine learning systems yet remain vulnerable to abrupt changes in client demand.
Despite the setback, Sama said it will continue focusing on its core services, including data annotation and model evaluation, while maintaining standards in data security and responsible AI practices.
The now-terminated contract had been one of Sama’s most significant in Nairobi, supporting a large portion of its workforce involved in training AI systems, including those linked to Meta’s AI-powered Ray-Ban smart glasses.
Recent investigations by European media outlets, working with Kenyan journalists, have also highlighted the nature of this work, reporting that footage captured through such devices is reviewed and labelled by contracted workers in Nairobi raising ongoing concerns around privacy, consent, and the global distribution of AI labour.