Lagos, Nigeria – Kuda Technologies, a Nigerian digital bank backed by global investors, has laid off staff across several departments as it restructures its operations. The move came even as the company says its financial performance has been improving and its losses are narrowing.
Okay News reports that on March 25, employees were invited to a company‑wide video call where senior executives announced that some roles were being cut. Affected staff reportedly received termination notices explaining that the changes followed a strategic review of the company’s direction and industry benchmarks.
The cuts impacted teams such as marketing, with about half of that unit’s employees affected. A Kuda spokesperson said the restructuring aims to align the organisation with its next phase of growth and scale, not because of financial pressure or individual performance. The company said it is offering severance packages varying by role and length of service, with some employees receiving up to about seven months of pay.
Despite the job reductions, Kuda says its Nigerian business has been performing better. The bank reduced its losses to about $5.83 million in 2024 from $35.11 million the year before, helped by higher revenue and lower operating costs. Its Nigerian unit nearly doubled revenue in local currency to about N21.2 billion and has seen strong growth in transaction volumes and digital lending.
The bank last raised $20 million in 2024 at an estimated $500 million valuation, after posting heavy losses in previous years. The restructuring reflects a broader shift across African fintech, where firms are focusing more on profitability and efficiency instead of rapid expansion. Investors are pushing companies such as Kuda to strengthen margins and prepare for tougher competition in Nigeria’s fast‑growing digital‑banking space.
