More than 600 employees of Hugo Technology, a Lagos-based outsourcing company, were laid off in a single day in response to the increasing demands for automation by clients.
One insider with knowledge of the development who spoke with our correspondent on condition of anonymity said they Hugo Technologies, which provides outsourcing solutions for customer support, e-commerce management, fraud prevention, AI data processing had been under pressure from competitors who has raced ahead in adopting artificial intelligence tools to replace human data annotation roles, and that this was beginning to affect its ability to secure contracts.
According to the insider, the workers, many of whom served as data annotators and remote support staff, were informed of the decision during a brief virtual meeting on Friday, January 23, 2025.
Efforts to obtain the company’s response were unsuccessful. Emails sent by The HR Anchor seeking comment on the layoffs and the role of automation in the decision had not been answered as of the time of going to press.
One of the affected staff said they doubted the company would respond publicly. One employee who spoke on condition of anonymity said workers were required to sign non-disclosure agreements upon termination and were warned against taking complaints to the media.
“They told us to sign a non-disclosure agreement upon termination,” the employee said. “In the letter, we were asked to consent that the company would not be dragged on any media platform. I’m very sure they won’t respond.”
The insider told The HR Anchor that affected members of staff received an “Important Meeting” invite last week scheduled for 30 minutes. During the call, an HR representative told them their services were no longer required, citing unspecified “challenges” facing the company.
Termination letters were subsequently sent to their personal email addresses, with instructions to return company property immediately.
“It would have been better if we had known earlier or been given prior notice,” the affected staff said, adding that the sudden decision left many workers financially stranded.
The HR Anchor understands that the layoffs followed months of declining projects and mounting pressure to meet targets, which they attributed to competition from rival firms using automated AI systems to complete data annotation tasks more quickly and cheaply.
Hugo Technologies had relied on human annotators to label and categorise data for clients. However, competitors deploying advanced AI tools were reportedly able to deliver faster results, leading to reduced contracts and revenue losses for the company.
Industry analysts say the incident reflects a broader global trend in which automation is reshaping the workforce.
Human resources professionals say the shift is inevitable but manageable with proper preparation.
Oluwapelumi Akinola, Human Resources Manager at NetworthPortfolio and Asset Management Limited, described AI as “a double-edged sword” that both eliminates and creates jobs.
“Artificial Intelligence is here to stay. Our stance should be one of acceptance, guided by strong ethical frameworks, rather than resistance,” Akinola said. “Individuals must build mastery in relevant skills that move them from being task executors to problem solvers.”
He noted that largely clerical and repetitive roles are most vulnerable to automation, including basic reporting, bookkeeping and data processing functions.
Boumagha Sagay, a chartered management consultant and HR practitioner, also advised workers to upgrade their skills.
“Workers in these fields need to upskill in AI and tech training,” she said. “While some roles will disappear, new opportunities are emerging that require digital competence and the ability to work alongside technology.”
Both experts expressed optimism that, over time, AI adoption could result in a net gain in employment if organisations and workers invest in retraining.
The World Economic Forum estimates that artificial intelligence could displace up to 92 million jobs worldwide by 2030 while creating 170 million new roles, underscoring the need for reskilling and workforce adaptation
