Nigerian digital bank, Kuda has given reasons for its decision to lay off employees in a recent company wide restructuring.
In a response seen by NewsDirect by a Kuda spokesperson to Tech Cabal, the digital bank explained that the move is necessary to align the company’s headcount with industry benchmarks and shifting operational priorities following a comprehensive strategic review.
While several hundred employees across multiple departments were impacted by contract terminations on March 25, 2026, the leadership emphasizes that this decision was not driven by financial pressure. Instead, it represents the natural evolution of the fintech at its current stage of development.
The Spokesperson also noted that the restructuring is neccesary to support its next phase of growth and operational scale.
The company’s recent financial performance underscores this shift as a move toward efficiency rather than a reaction to instability. Kuda successfully narrowed its losses from $35.11 million in 2023 to $5.83 million in 2024, supported by its Nigerian subsidiary nearly doubling its revenue to ₦21.2 billion. By early 2025, the digital bank was processing over 300 million transactions worth ₦14.3 trillion in a single quarter, maintaining a net margin between 3% and 7% per month. These metrics indicate that the reorganization is designed to sustain this trajectory and optimize the long-term direction of the business.
To support those affected by the transition, Kuda is providing enhanced severance packages and practical transition support. These packages, which vary by role and tenure, reportedly offer up to seven months’ pay for some staff, contingent upon a legally binding settlement agreement.
Despite internal concerns regarding the clarity of the process and recent senior-level hiring, the company maintains that these structural changes are essential to remain focused on serving its seven million registered customers.
