REVEALED: Why Kuda Laid Off Hundreds of Staff

Nigerian digital bank Kuda has laid off hundreds of employees across multiple departments, informing affected staff that their roles had been terminated as part of a broader organisational restructuring.

The development was confirmed by sources familiar with the matter, as well as internal company documents.

Employees were notified during a video call with senior executives. The layoffs cut across several teams, with a significant portion of the impact reportedly concentrated within the company’s marketing unit.

What the Company Is Saying

In an official statement, Kuda said the move is aimed at repositioning 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,” a company spokesperson said.

The company emphasised that the decision was not driven by financial distress but reflects a broader strategic evolution aligned with industry standards.

“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 also clarified to staff that the layoffs were not performance-related but followed a comprehensive review of operational priorities.

“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 noted that affected employees will receive enhanced severance packages alongside transition support.

More Insights

An internal communication to impacted staff revealed that the restructuring followed a review of “future operational priorities, industry benchmarking, and long-term direction.”

However, the process has left some employees unsettled, with concerns raised over the timing and limited clarity—particularly given recent senior-level hires.

Sources indicate that at least 19 out of the company’s 40 marketing employees were affected.

Severance packages vary depending on role and tenure, with some employees expected to receive up to seven months’ pay. However, these enhanced benefits are conditional.

According to the notice:

“The enhanced severance payment would be conditional upon you entering into a legally binding settlement agreement… [and] agree not to bring any claims.”

What You Should Know

Kuda has been tightening its cost structure as it pivots from rapid expansion toward profitability.

The fintech reduced its losses to $5.83 million in 2024—an 84% drop from $35.11 million in 2023—reflecting significant cost-cutting efforts and operational efficiency gains.

Staff costs declined by 46% to $6.31 million, while other operating expenses fell by 61% to $17.12 million, underscoring a shift to a leaner operating model.

Despite growth in local revenue, currency volatility weighed on overall performance, with group revenue declining by 15% in dollar terms. Customer deposits also dropped to ₦83.2 billion from ₦96 billion.

Looking ahead, Kuda aims to grow its monthly active users to 1.7 million by 2026, building on a base of 7 million registered users in 2024.

Industry Context

Kuda’s move reflects a broader trend among Nigerian startups adjusting to economic pressures and investor expectations.

Food procurement startup Vendease reportedly cut about 120 employees in 2025 to extend its runway amid rising costs.

Similarly, crypto platform Zap Africa reduced its workforce by around 44% between late 2025 and early 2026, as it transitioned toward a leaner, automation-driven model.