Kuda Lays Off Hundreds in Company Restructuring

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Kuda, one of Nigeria’s most prominent digital banks, has carried out a sweeping round of layoffs that has left hundreds of employees without jobs.

On March 25, 2026, staff across the company were called into a company-wide video meeting with senior executives. By the time the call ended, many had been told their contracts were terminated as part of a broad restructuring exercise. The cuts hit multiple departments, with the marketing team particularly hard hit, 19 out of its roughly 40 employees were let go, according to people familiar with the matter.

Kuda executives told staff the decision stemmed from a strategic review of the company’s future operational priorities, industry benchmarking, and long-term direction. They emphasized that the layoffs were not driven by poor financial performance or individual underperformance. Instead, the move is framed as an effort to realign the organization for its next phase of growth.

The company has offered affected employees severance packages that vary by role and tenure, with some reportedly receiving as much as seven months’ pay. However, receiving the full package requires signing a settlement agreement that includes a waiver preventing future claims against the company.

Kuda has been tightening its cost base even as its financials have shown clear improvement. The company narrowed its losses sharply in 2024, reducing them to about $5.83 million from $35.11 million the previous year, supported by stronger revenue performance. Its Nigerian operations nearly doubled revenue in local currency terms during that period. Despite this progress, the fintech appears to be shifting from aggressive expansion toward greater operational efficiency and profitability focus.

This is not Kuda’s first round of headcount adjustments. In late 2024 and early 2025, roughly 100 senior staff exited amid internal changes. The latest cuts, however, are wider in scope and have affected core units, raising questions about how the company plans to maintain momentum in a competitive Nigerian fintech landscape that includes players like Moniepoint, Opay, and PalmPay.

The development comes at a time when several Nigerian companies have announced staff reductions in the first quarter of 2026. Kuda’s move fits a broader pattern in the African tech ecosystem, where fast-growing startups, after years of heavy fundraising and expansion, are now prioritizing sustainable unit economics over rapid headcount growth.

For a company that built its brand on simple, fee-free banking for everyday Nigerians and raised significant international capital in previous rounds, the restructuring signals a more mature, if painful, chapter. Kuda has positioned the changes as necessary preparation rather than distress. Whether this realignment delivers the intended efficiency without slowing product innovation or customer growth remains to be seen.

In Nigeria’s fintech sector, where talent is both scarce and expensive, such resets often spark debate about execution risk. Kuda’s leadership will now need to prove that a leaner organization can still deliver the reliable digital banking experience that helped it stand out in the first place. The coming months will show whether this was a timely strategic pivot or a sign of deeper pressures facing the industry.