Nigerian digital bank, Kuda Technologies Limited, has embarked on what it described as operational restructuring for it to better align with industry trends and long term growth plans.
The restructuring has led to a sweeping round of layoffs affecting multiple departments.
The job cuts were disclosed following a company-wide virtual meeting held on Wednesday, March 25, where employees were invited to join senior executives.
Before the session ended, hundreds of staff were informed that their roles had been terminated, according to sources familiar with the development.
Teams across the organisation were impacted, including the marketing unit where nearly half of the workforce, 19 out of 40 employees, were affected, insiders revealed.
“Kuda is evolving how the organisation is structured to support the next phase of our growth and scale,” a company spokesperson told TechCabal in an emailed response on Friday.
“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.”
READ ALSO: CBN Assures Nigerians On Union Bank, Acknowledges Court Judgment
“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.
“We are supporting those affected with enhanced severance packages and practical transition support, while staying focused on serving our customers and continuing our long-term growth.”
Nineteen of the unit’s 40 marketing employees were affected, two employees who were affected by the cuts told TechCabal.
“As you know from the announcement/meeting on 25th March 2026, the Company is considering restructuring its operations and aligning its headcount.
“Following a strategic review of future operational priorities, industry benchmarking, and long-term direction, the Company has identified the need to restructure and reorganise certain departments,” part of the letter sent to one of the affected employees on Wednesday read.
Kuda said severance packages have been offered to affected employees, with compensation varying based on role and tenure.
Some staff are expected to receive up to seven months’ pay, alongside enhanced exit terms tied to settlement agreements.
“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 development reflects a broader shift within Africa’s fintech sector, where startups are increasingly prioritising profitability and operational efficiency over rapid expansion following years of aggressive, investor-backed growth.
Kuda, which serves about seven million customers, has significantly reduced its losses in recent years. The company posted a loss of approximately $5.83 million in 2024, down sharply from $35.11 million the previous year, supported by stronger performance in its Nigerian operations and tighter cost controls.
The fintech last raised external funding in 2024, securing $20 million in equity at a valuation of roughly $500 million, following nearly $45 million in losses recorded over the preceding two years.
