Kuda Bank Sacks Hundreds in Surprise Shake-Up

It started as an ordinary Wednesday morning. Then the video call changed everything.

On 25 March, employees of Kuda — one of Nigeria’s most recognisable digital banks — were invited to join a video meeting with senior executives. Before the call ended, hundreds were told their contracts had been terminated. Just like that, the jobs were gone.

The development unsettled both current and former staff, with some describing the process as chaotic and poorly communicated. Several employees reportedly struggled to access the meeting link, only to eventually join and receive termination notices shortly after.

For a company that has positioned itself as the future of African banking, the move raised immediate questions.

Half a Marketing Team, Gone Overnight

The Kuda layoffs cut across marketing, growth, and product departments, with marketing taking the hardest hit. At least 19 of the team’s 40 employees lost their jobs. That is nearly half a department wiped out in a single afternoon.

Some workers also questioned the timing, pointing to recent senior-level hires within the company. The move seemed to contradict the direction many had assumed Kuda was heading.

Kuda, however, was firm in its explanation. “Kuda is evolving how the organisation is structured to support the next phase of our growth and scale,” a company spokesperson said. “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 made clear the Kuda layoffs had nothing to do with individual performance. “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.

Severance Comes With Strings Attached

Affected workers have been offered severance packages tied to role and tenure, with some expecting up to seven months’ pay. However, an enhanced exit option requires employees to sign legally binding agreements that limit their ability to pursue claims against the company.

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

For many, that condition added yet another layer of discomfort to an already difficult situation.

Profitable on Paper, Cutting Jobs in Practice

Perhaps the most striking detail is the financial backdrop. Kuda has significantly narrowed its losses in recent years, dropping from $35.11 million in 2023 to $5.83 million in 2024, while growing revenue from its Nigerian operations to ₦21.2 billion.

The company has roughly seven million registered customers and has previously raised over $90 million from high-profile international investors. On paper, things were looking up.

Yet the Kuda layoffs arrived anyway. The development reflects a broader shift across Africa’s fintech sector, where startups are increasingly prioritising profitability and operational efficiency over rapid expansion following years of aggressive, investor-backed growth.