Kuda has cut jobs across its business after a company-wide review, with staff told the decision was necessitated by a restructuring focused on preparing for its next phase.
Employees joined a video call with senior executives on Wednesday, March 25, where many learned their roles had been terminated. The cuts affected several departments, according to people familiar with the process and internal documents.
In a response sent on Friday, a company spokesperson said: “Kuda is evolving how the organisation is structured to support the next phase of our growth and scale. 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 told staff the decision was not tied to individual performance. Instead, they said it followed a strategic review that looked at long-term priorities and how the company compares with others in the sector.
“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.”
Inside the company, the announcement did not land smoothly, as some employees found it difficult to join the initial call after the meeting link failed.
When it finally started, executives confirmed the layoffs without much detail, leaving questions about how decisions were made.
One internal document sent to affected staff read: “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.”
The impact affected some teams more. Nineteen out of forty employees in the marketing unit were affected, according to two people who said they were part of the process.
Kuda has offered severance packages that differ by role and length of service. Some employees expect payouts of up to seven months’ salary and the company is also proposing an enhanced exit option tied to a settlement agreement.
Part of the notice states: “The enhanced severance payment would be conditional upon you entering into a legally binding settlement agreement… [and] agree not to bring any claims.”
The layoffs come at a time when the company’s financial position has been improving. Losses dropped from $35.11 million in 2023 to $5.83 million in 2024. Revenue from its Nigerian unit nearly doubled to ₦21.2 billion, while operating costs fell.
At the same time, activity on the platform has grown. Kuda processed transactions worth ₦14.3 trillion in 2025, more than in its first five years combined. It also issued ₦16.4 billion in overdrafts, a 43% increase over the previous quarter.
Even so, the environment for fintech firms has changed. Funding into African fintech dropped by more than half in 2024 compared with the peak years of 2021 and 2022.
Investors now want clear profit, not just rapid customer growth. Kuda’s $20 million raise in 2024, at a $500 million valuation, shows that change in direction.
Across the industry, others are making similar moves. Companies such as OPay and Moniepoint have adjusted their teams in recent months, while Flutterwave has faced regulatory issues in key markets.
At the same time, oversight from the Central Bank of Nigeria and foreign exchange limitations continue to weigh on margins.
Kuda, which has about seven million customers, is also dealing with stronger competition from traditional banks expanding their digital services.
As it stands, Kuda Bank says the restructuring is about positioning for growth. Inside the business, however, the sudden nature of the cuts has left many employees trying to make sense of what comes next.
