Kuda Microfinance Bank, one of the Nigerian digital banks, lays off hundreds of workers across several departments after notifying employees that their contracts had been terminated as part of a company-wide reorganization.
As of March 2026, Kuda Bank has confirmed the layoffs of hundreds of employees in several areas. In order to get the business ready for its next stage of expansion, this reorganization is a component of a strategic assessment.
These hundreds were laid off across marketing, growth, and product, with marketing hardest hit, losing 19 of 40 employees. Staff were notified during a company-wide video meeting on March 25. Severance packages vary by role and tenure, with some reaching 7 months’ salary, though enhanced payouts are conditional on signing a settlement agreement and waiving future claims.
The internal corporate documents and others with knowledge of the situation revealed the development.
During a video conference with senior executives, the impacted employees were informed. Sources claim that a sizable portion of the company’s marketing team was impacted by the layoffs, which occurred across multiple divisions.
Kuda stated in a statement that the move was a part of the company’s attempts to reposition itself for its next stage of expansion.
According to a company representative, “Kuda is evolving how the organization is structured to support the next phase of our growth and scale.”
“This is a natural evolution of a company at our stage, in line with industry benchmarks, rather than a decision motivated by financial pressure.”
Additionally, executives informed employees that the layoffs were the result of a strategic evaluation of the organization’s operational priorities rather than being based on individual performance.
Certain positions throughout the company have been affected by this procedure. We are aware that this is challenging, and we did not make these choices lightly,” the representative continued.
According to the corporation, it is providing transition support and improved severance payments to impacted employees.
The reorganization came after a review of “future operational priorities, industry benchmarking, and long-term direction,” according to an internal message given to impacted employees.
Concerns regarding the decision’s timing and lack of clarity were voiced by certain employees, especially in light of recent senior-level hiring.
Sources acquainted with the situation claim that at least 19 of the company’s 40 marketing staff members were impacted.
Depending on their position and length of service, employees may earn severance benefits equal to up to seven months’ salary.
Enhanced severance compensation, however, comes with restrictions, such as having to sign a contractual contract promising not to sue the corporation.
A portion of the notice stated, “The enhanced severance payment would be conditional upon you entering into a legally binding settlement agreement… [and] agreeing not to bring any claims.”
As it moves from ambitious expansion to a greater emphasis on profitability, Kuda has reportedly been cutting its cost structure.
Kuda said the layoffs were not performance-based but followed a strategic review to align with industry benchmarks.
Due to considerable cost-cutting and operational changes, the move comes despite improving finances, with the fintech’s losses decreased to $5.83 million in 2024, an 84% decrease from $35.11 million in 2023.
In 2025, the bank processed ₦14.3 trillion in transactions, surpassing its first five years combined.
A leaner operating strategy was indicated by a 46% decrease in staff costs to $6.31 million and a 61% decrease in other operating expenses to $17.12 million.
Currency fluctuation affected overall performance, with group revenue falling by 15% in dollars despite an increase in local sales. Additionally, customer deposits decreased from N96 billion to N83.2 billion.
While registered users increased to 7 million in 2024, the corporation hopes to increase monthly active users to 1.7 million by 2026.
As they modify operations to control expenses, several startups in Nigeria have announced targeted layoffs. A food procurement firm called Vendease laid off roughly 120 workers in 2025 in order to prolong its operations in the face of growing expenses.
As it transitioned to a smaller, automation-driven strategy, cryptocurrency company Zap Africa also cut its headcount by roughly 44% between late 2025 and early 2026.
The layoffs mirror a broader African fintech trend where companies are shifting focus from rapid expansion to profitability and operational efficiency. Between December 2024 and January 2025, roughly 100 senior staff had already exited as part of earlier internal changes.
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