The Digest: Nigerian digital bank Kuda has laid off hundreds of employees across multiple departments as part of a company-wide restructuring aimed at repositioning for its next phase of growth. Affected staff were notified during a video call with senior executives, with sources indicating that a significant number of marketing employees were impacted—at least 19 of the company's 40 marketing staff. The company stated the decision was not driven by financial pressure but by a strategic review of operational priorities and industry benchmarking. Affected employees are being offered enhanced severance packages tied to signing settlement agreements.
Key Points:
- The layoffs cut across several units, with the marketing team significantly affected.
- Kuda reported reduced losses from $35.11 million in 2023 to $5.83 million in 2024, an 84% decline.
- Staff costs dropped 46% to $6.31 million as the company shifted toward profitability.
- Affected employees must sign legally binding agreements to receive enhanced severance packages.
- The restructuring follows a broader trend of Nigerian startups adjusting operations to manage costs.
As Kuda pivots from aggressive expansion to profitability, the layoffs reflect the challenging environment for Nigerian fintechs navigating rising costs and shifting investor expectations.
Sources: Nairametrics
