Nigerian digital bank, Kuda, has laid off hundreds of employees across multiple departments after informing staff that their contracts had been terminated as part of a company-wide restructuring.
The development was disclosed by sources familiar with the matter and internal company documents.
The affected employees were notified during a video call with senior executives. The layoffs cut across several units, with sources indicating that a significant number of employees in the company’s marketing team were affected.
What they are saying
In a statement, Kuda said the decision was part of efforts to reposition the company for its next phase of growth.
- “Kuda is evolving how the organisation is structured to support the next phase of our growth and scale,” a company spokesperson said.
- “This is not a decision driven by financial pressure, but part of the natural evolution of a company at our stage, aligning with industry benchmarks.”
- Executives also told staff that the layoffs were not tied to individual performance but followed a strategic review of the company’s operational priorities.
- “As part of this process, some roles across the business have been impacted. We know this is difficult, and these were not decisions we took lightly,” the spokesperson added.
The company said it is offering affected employees enhanced severance packages and transition support.
More insights
An internal communication sent to affected staff stated that the restructuring followed a review of “future operational priorities, industry benchmarking, and long-term direction.”
- The process left some employees unsettled, with concerns raised about the lack of clarity and the timing of the decision, particularly in light of recent senior-level hiring.
- At least 19 of the company’s 40 marketing employees were affected, according to sources familiar with the matter.
- Severance packages vary depending on role and tenure, with some employees expected to receive up to seven months’ pay.
- However, enhanced severance payments are tied to conditions, including signing a legally binding agreement not to pursue claims against the company.
- “The enhanced severance payment would be conditional upon you entering into a legally binding settlement agreement… [and] agree not to bring any claims,” part of the notice read.
What you should know
According to reports, Kuda has been tightening its cost structure as it shifts from aggressive expansion to a stronger focus on profitability.
- The fintech reduced its losses to $5.83 million in 2024, an 84% decline from $35.11 million recorded in 2023, reflecting significant cost-cutting measures and operational adjustments.
- Staff costs dropped by 46% to $6.31 million, while other operating expenses fell by 61% to $17.12 million, pointing to a leaner operating model.
- Despite growth in local revenue, currency volatility impacted overall performance, with group revenue declining by 15% in dollar terms. Customer deposits also fell to N83.2 billion from N96 billion.
- The company aims to grow its monthly active users to 1.7 million by 2026, while registered users rose to 7 million in 2024.
In Nigeria, a number of startups have made targeted job cuts as they adjust operations to manage costs. Vendease, a food procurement startup, cut about 120 employees in 2025 to extend its runway amid rising costs.
Crypto startup Zap Africa also reduced its workforce by about 44% between late 2025 and early 2026 as it shifted toward a leaner, automation-driven model.
