Nigeria: Kuda Lays Off Staff in Restructuring to Align With Growth Strategy

Kuda has laid off employees across multiple departments as part of a company-wide restructuring aimed at aligning operations with its next phase of growth.

Staff were informed during a company-wide video call on March 25, where senior executives said the changes followed a strategic review of operational priorities and industry benchmarks. The company said the decision was not driven by financial pressure or individual performance.

The layoffs affected several teams, including marketing, where 19 out of 40 employees were impacted, according to people familiar with the matter. Affected employees have been offered severance packages based on tenure, with some expecting up to seven months' pay.

Kuda said the restructuring reflects a shift in how the organisation is structured as it scales. "This is not a decision we took lightly," a spokesperson said, adding that the company is providing transition support for affected staff.

The move comes as the fintech narrows losses and grows its operations. Kuda reported a reduction in losses from $35.11 million in 2023 to $5.83 million in 2024, supported by higher revenue in Nigeria and lower operating costs. The company has about 7 million registered customers.

Key Takeaways

The layoffs at Kuda reflect a broader trend in fintech where companies shift from growth-driven hiring to efficiency-focused operations as they mature. After years of rapid expansion, many fintech firms are reassessing cost structures and organisational design to improve profitability and scalability. Kuda's reduction in losses and rising transaction volumes indicate that the business is moving toward a more sustainable model, where operational efficiency becomes a priority. Restructuring often involves reallocating resources toward core functions that drive revenue and long-term growth while reducing roles that are no longer aligned with strategy. The decision also highlights the pressure on fintech companies to meet investor expectations following funding rounds, particularly as access to capital becomes more selective. While layoffs can create short-term disruption, they are often part of a transition toward leaner operations and improved margins. For the broader African fintech sector, the move signals a shift from aggressive expansion to disciplined execution, where companies focus on unit economics, profitability and sustainable growth rather than scale alone.

Read the original article on Daba Finance.