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Kuda Restructures Operations Amid Sector-Wide Reset
Kuda Technologies Limited, the Nigerian digital bank backed by global investors, has laid off employees across multiple departments as part of a broad operational restructuring, despite reporting steady improvements in its financial performance.
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The job cuts were communicated on Wednesday, March 25, during a company-wide virtual meeting with senior executives. According to employees familiar with the matter, hundreds of staff were informed that their roles had been terminated before the call ended.
Marketing, Operations Among Hardest Hit
The restructuring affected several teams, including marketing, where nearly half of the department—19 out of 40 employees—were laid off, according to affected workers. Other support and operational units were also impacted as the company reviewed its internal structure.
While some employees expressed concern over the manner and timing of the layoffs—especially following recent senior-level hires—management maintained that the decision followed a comprehensive strategic review.
Company Says Move Is Strategic, Not Financially Driven
In a statement emailed on Friday, a Kuda spokesperson said the restructuring was aimed at positioning 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,” the spokesperson said.
The company stressed that the layoffs were not a result of financial distress or employee performance issues, but rather a shift in operational priorities aligned with long-term objectives.
Affected employees are being offered severance packages based on role and length of service. Some staff may receive up to seven months’ pay, alongside enhanced exit terms tied to settlement agreements.
Improved Financials Contrast With Job Cuts
The layoffs come even as Kuda continues to narrow its losses. In 2024, the fintech reduced losses to about $5.83 million, down sharply from $35.11 million the previous year. Its Nigerian unit nearly doubled revenue in local currency to approximately ₦21.2 billion, driven by stronger transaction volumes and tighter cost controls.
Kuda has reported processing over 300 million transactions valued at ₦14.3 trillion, issuing ₦16.4 billion in overdrafts—up 43 percent quarter-on-quarter. CEO Babs Ogundeyi has said the bank’s net margin ranges between 3 and 7 percent monthly, a pace that could see transaction volumes in 2025 exceed those of its first five years combined.
The company last raised external funding in 2024, securing $20 million in equity at a valuation of about $500 million, following nearly $45 million in losses over the preceding two years.
Nigerian Fintechs Shift From Growth to Profitability
Kuda’s restructuring reflects a broader recalibration across Nigeria’s fintech ecosystem, where firms are moving away from rapid expansion toward sustainable profitability amid tighter funding conditions.
Several startups have taken similar steps, including Zap Africa, which cut 44 percent of its workforce to adopt a leaner, AI-driven model, and Okra, which shut down operations in 2025. Others, such as Vendease and Reliance Health, have also implemented layoffs.
Industry analysts note that marketing and customer support roles are often the first affected, as companies reinvest in automation, AI, and core revenue-generating functions.
Investors Demand Efficiency as Competition Intensifies
With venture funding across African fintechs declining sharply in 2024–2025, investors are increasingly prioritizing efficiency, margins, and clear paths to profitability over aggressive customer acquisition.
For Kuda, the restructuring signals a recalibration of its cost base and internal operations as competition intensifies in Nigeria’s fast-growing digital banking market—and as the company works to balance scale with sustainable growth.
