Kuda Technologies Limited has laid off employees across several departments as it restructures its operations, even as the digital bank reports improving financial performance.
Staff were invited to a company-wide video call on March 25, where hundreds of employees were informed that their roles had been terminated as part of a broader restructuring.
The cuts affected multiple teams, including marketing, where 19 of the unit’s 40 employees were impacted, according to affected workers.
In a statement, a Kuda spokesperson said the move followed a strategic review of the business and was meant to prepare the company for its next phase of growth.
The company stated that the decision was not driven by financial pressure or employee performance but by changes in operational priorities.
Kuda said it is offering affected employees severance packages that vary depending on role and length of service, with some staff receiving up to seven months of pay.
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The layoffs come as many African fintech companies shift focus from rapid expansion to profitability and operational efficiency after years of venture-backed growth.
Kuda, which has about seven million registered customers, reduced its losses to approximately $5.83 million in 2024 from $35.11 million a year earlier.
The improvement was helped by stronger performance from its Nigerian business and lower operating expenses, with the local unit nearly doubling revenue to about N21.2 billion during the period.
The fintech has also reported strong growth in transaction activity, processing more than 300 million transactions worth roughly N14.3 trillion.
Chief Executive Officer Babs Ogundeyi said the company’s net margin has ranged between three per cent and seven per cent per month.
Kuda last raised external funding in 2024, securing $20 million in equity at a valuation of about $500 million.
The restructuring suggests the startup is adjusting its cost base and internal structure as competition intensifies in Nigeria’s digital banking market.
