Kuda Bank Lays Off Hundreds In Restructuring Move

Nigerian digital bank, Kuda, has laid off hundreds of employees across multiple departments as part of a company-wide restructuring exercise aimed at repositioning the fintech for its next phase of growth.

Sources familiar with the matter said the affected staff were informed during a video call with senior executives, with the cuts spanning several units, including a significant number from the marketing department.

In a statement, the company said the decision was not driven by financial pressure but part of an internal review of operational priorities and long-term strategy. Kuda added that the layoffs were not linked to individual performance.

The fintech said it is offering affected employees enhanced severance packages and transition support. However, reports indicate that some payments are conditional on signing agreements that waive the right to pursue legal claims.

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Some employees reportedly raised concerns over the timing and lack of clarity around the decision, especially given recent senior-level hiring within the company. At least 19 of about 40 marketing staff were affected, according to sources.

Why Kuda Bank made the move

Kuda’s restructuring comes as it continues efforts to improve profitability, having reduced its losses to $5.83 million in 2024 from $35.11 million in 2023. Operating costs also declined sharply, though revenue in dollar terms fell due to currency volatility.

The development reflects a wider trend of layoffs across Nigeria’s startup ecosystem, with firms such as Vendease and Zap Africa also cutting jobs in recent months.

Kuda’s layoffs come amid broader financial pressure in Nigeria’s tech ecosystem, where many startups are shifting focus from rapid expansion to profitability and leaner operations.

The company has been working to reduce costs significantly, including staff expenses and operating overheads, as it attempts to stabilise performance and grow its user base.