Kuda Bank Lays Off Hundreds in Company-Wide Restructuring
Nigerian digital bank, Kuda has stunned the fintech and startup community by laying off hundreds of employees in a sweeping company-wide restructuring. The decision, which affected multiple departments including marketing, comes as the bank seeks to streamline operations, cut costs, and prepare for its next phase of growth.
Kuda Bank Lays Off Hundreds in Company-Wide Restructuring
Fast growing digital bank, Kuda has laid off hundreds of employees across multiple departments as part of a strategic company-wide restructuring, according to sources familiar with the matter and internal documents.
Affected staff were notified during a video call with senior executives, who informed them that their contracts had been terminated. The layoffs impacted several units, with the marketing team hit particularly hard, where nearly half of the 40-person team reportedly lost their jobs.
In a statement that is making rounds online, the company's spokesperson explained that the move was part of an effort to reposition the company for its next growth phase.
“Kuda is evolving its organisational structure to support the next stage of growth and scale. This decision is not driven by financial pressure but is part of the natural evolution of a company at our stage, aligning with industry standards.”
Executives emphasised that the layoffs were not based on individual performance but resulted from a strategic review of operational priorities. The company is offering affected employees enhanced severance packages and transition support to help ease the impact. Severance packages vary by role and tenure, with some employees set to receive up to 7 months’ pay. However, some benefits require signing a legally binding agreement not to pursue claims against the company.
While Kuda has communicated its long-term strategy and offered transition support, some employees have expressed unease about the timing and clarity of the layoffs, especially after recent senior-level hires. The situation highlights the challenges fintech startups face as they balance growth, profitability, and workforce management in a competitive market.
Source: TrendyBeatz
