Kuda Bank sack plenty workers for restructuring, dem talk say na for growth

Na big gist dey for Nigeria fintech world as Kuda Technologies Limited, one popular digital bank wey get plenty investors from abroad, don sack hundreds of workers across different departments. The thing happen on Wednesday, March 25, 2026, when senior executives call company-wide video meeting. For inside the meeting, dem tell the affected staff say dem contract don finish as part of restructuring wey dey happen for the whole company.

According to sources wey know the matter well and internal documents wey dem see, the sack affect many units. For marketing team alone, about 19 out of 40 workers lose their work. The company don send notice to all the affected staff, and dem dey offer dem severance package wey go depend on their role and how long dem work for Kuda. Some workers fit collect up to seven months pay, but the enhanced payment dey conditional. Dem go need to sign agreement say dem no go take Kuda to court for any claim.

For statement wey Kuda spokesperson release, dem talk say the decision na part of efforts to reposition the company for the next phase of growth. “Kuda dey change how we structure the organisation to support the next phase of our growth and scale,” the spokesperson talk. “This decision no be because of financial pressure, but na part of natural evolution of company for our stage, to align with industry benchmarks.”

The executives tell staff say the sack no be because of individual performance, but na after strategic review of the company operational priorities. “As part of this process, some roles across the business don affect. We know say this one hard, and we no take this decision anyhow,” the spokesperson add. Dem talk say dem dey offer affected workers enhanced severance packages and transition support.

Internal communication wey dem send to affected staff talk say the restructuring follow review of “future operational priorities, industry benchmarking, and long-term direction.” But the process make some workers worry. Dem complain say no enough clarity and the timing no good, especially as dem just dey hire senior-level people recently.

Kuda don dey tighten cost structure as e shift from aggressive expansion to focus more on profitability. The fintech reduce losses to $5.83 million for 2024, which na 84% drop from $35.11 million wey dem record for 2023. This one show say cost-cutting measures and operational adjustments dey work. Staff costs drop by 46% to $6.31 million, while other operating expenses fall by 61% to $17.12 million, to show leaner operating model.

Even though local revenue grow, currency volatility affect overall performance. Group revenue decline by 15% for dollar terms. Customer deposits also fall to N83.2 billion from N96 billion. The company want to grow monthly active users to 1.7 million by 2026, while registered users rise to 7 million for 2024.

For Nigeria, many startups don dey cut jobs as dem adjust operations to manage costs. Vendease, food procurement startup, sack about 120 workers for 2025 to extend runway as costs dey rise. Crypto startup Zap Africa also reduce workforce by about 44% between late 2025 and early 2026 as e shift to leaner, automation-driven model.

Kuda, wey get about seven million registered customers, don dey narrow losses for recent years. The company Nigerian unit nearly double revenue for local currency to about N21.2 billion for the period. The fintech also report strong growth for transaction activity. For last public update, Kuda talk say dem process more than 300 million transactions worth about N14.3 trillion and issue N16.4 billion for overdrafts, wey na 43 percent increase from previous quarter.

Babs Ogundeyi, chief executive officer of Kuda, talk say the company net margin dey range between three percent and seven percent per month. If that pace continue through the year, the digital bank fit process more transactions for 2025 than wetin e process for first five years combined.

Kuda last raise external funding for 2024, secure $20 million for equity at valuation of about $500 million. The fundraising come after the company record nearly $45 million losses over two years before the round. The restructuring show say the startup dey adjust cost base and internal structure as competition dey increase for Nigeria fast-growing digital banking market and investors dey push fintech firms to show clearer paths to sustainable growth.