On Wednesday, March 25, employees of Kuda, a Nigerian digital bank, were invited to a video call with senior executives. Before it ended, hundreds were told their contracts had been terminated as part of a company-wide restructuring. The job cuts affected multiple departments, according to multiple sources familiar with the matter and official documents obtained by TechCabal on Friday morning.

“Kuda is evolving how the organisation is structured to support the next phase of our growth and scale,” a company spokesperson told TechCabal in an emailed response on Friday. “This is not a decision driven by financial pressure, but part of the natural evolution of a company at our stage, aligning with industry benchmarks.”

Executives also told staff the layoffs were not linked to financial performance or individual output but to a shift in operational priorities after a strategic review. That process, they said, considered industry benchmarks and the company’s long-term direction.

“As part of this process, some roles across the business have been impacted. We know this is difficult, and these were not decisions we took lightly,” the spokesperson added. “We are supporting those affected with enhanced severance packages and practical transition support, while staying focused on serving our customers and continuing our long-term growth.”

Nineteen of the unit’s 40 marketing employees were affected, two employees who were affected by the cuts told TechCabal. 

“As you know from the announcement/meeting on 25th March 2026, the Company is considering restructuring its operations and aligning its headcount. 

“Following a strategic review of future operational priorities, industry benchmarking, and long-term direction, the Company has identified the need to restructure and reorganise certain departments,” part of the letter sent to one of the affected employees on Wednesday and obtained by TechCabal read. 

Events leading up to the announcement unsettled employees, an ex-employee told TechCabal on Thursday. 

An unusual company-wide meeting was called, but staff initially could not access the link. When the call eventually started, senior Kuda leaders confirmed the job cuts.

Some employees said the process lacked clarity. Others pointed to recent hiring decisions, including senior-level recruits.

Affected staff have been offered severance packages that vary by role and tenure. Some expect up to seven months’ pay, a source told TechCabal. The company is also proposing an enhanced exit option tied to a settlement agreement.

“The enhanced severance payment would be conditional upon you entering into a legally binding settlement agreement… [and] agree not to bring any claims,” part of the notice read.

Kuda’s recent moves

Kuda expanded into the United Kingdom with a remittance-focused product in 2022 and has since narrowed its losses significantly. The fintech, which has seven million registered customers, cut its losses from $35.11 million in 2023 to $5.83 million in 2024, driven by its Nigerian subsidiary nearly doubling its Naira revenue to ₦21.2 billion and a significant reduction in operating expenses.

The last time the fintech shared its numbers publicly, it said it processed over 300 million transactions worth ₦14.3 trillion ($9.3 billion) and issued ₦16.4 billion in overdrafts,  a 43% increase from the previous quarter. The neobank’s net margin ranged from 3% to 7% per month, Babs Ogundeyi, its chief executive officer, told TechCabal. If Kuda maintained that Q1 pace through year-end, it would have processed more in 2025 alone than in its entire first five years combined. 

Kuda last raised external funding in 2024 with a $20 million equity round at a $500 million valuation, after it made almost $45 million in losses in the two years leading up to that round.