- A Nigerian digital bank, Kuda, has laid off hundreds of employees across multiple departments in a restructuring move
- Affected staff were informed during a video call with senior executives
- The fintech company insisted that the layoffs are not due to financial pressure but strategic restructuring
Nigerian digital banking platform Kuda has laid off hundreds of employees across various departments as part of a major restructuring effort aimed at repositioning the company for future growth.
According to sources familiar with the situation and internal documents, affected staff were informed of their termination during a company-wide video call with senior executives. The layoffs impacted multiple teams, with a notable number of employees in the marketing department among those affected.
In response to the development, the company maintained that the move is strategic rather than financially motivated.
“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 further clarified that the layoffs were not linked to employee performance but were the outcome of a broader operational review.
“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.
Kuda also confirmed that affected employees would receive enhanced severance packages alongside transition support.
However, internal communication revealed that these benefits are conditional. Employees must sign legally binding agreements waiving their rights 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.
The restructuring follows an internal review focused on “future operational priorities, industry benchmarking, and long-term direction.”
Despite this, the decision has left some employees uneasy, particularly due to limited communication and its timing, which comes shortly after recent senior-level hires.
Sources indicate that at least 19 out of the company’s 40 marketing staff were affected. Severance packages vary depending on role and tenure, with some employees expected to receive up to seven months’ pay.
Kuda’s restructuring aligns with its broader shift from rapid expansion to a more sustainable, profitability-driven model.
The company recorded a significant reduction in losses, dropping to $5.83 million in 2024 from $35.11 million in 2023, an 84% decline.
Operational efficiency has improved notably, with staff costs falling by 46% to $6.31 million and other expenses declining by 61% to $17.12 million.
However, currency volatility weighed on overall performance, contributing to a 15% drop in group revenue when measured in dollars. Customer deposits also declined to N83.2 billion from N96 billion.
Despite these challenges, Kuda continues to expand its user base, reaching 7 million registered users in 2024. The company is targeting 1.7 million monthly active users by 2026.
The layoffs reflect a broader trend within Nigeria’s startup ecosystem, where companies are increasingly adopting leaner operational models.
For instance, Vendease reportedly cut around 120 jobs in 2025 to extend its financial runway, while Zap Africa reduced its workforce by about 44% between late 2025 and early 2026 as it transitioned toward automation-driven operations.