Kuda Technologies Limited, a Nigerian fintech company, has laid off hundreds of employees as part of a company-wide restructuring initiative. This decision comes in the wake of a strategic review aimed at aligning the workforce with the company’s long-term operational priorities.

The layoffs have affected multiple departments, including marketing, where nineteen of the unit’s 40 employees were impacted. Kuda’s spokesperson emphasized that this restructuring is not driven by financial pressure but is part of the natural evolution of a company at its stage, aligning with industry benchmarks.

In recent years, Kuda has seen a significant narrowing of its losses, from $35.11 million in 2023 to $5.83 million in 2024. The company currently boasts about seven million registered customers and processed over 300 million transactions worth ₦14.3 trillion (approximately $9.3 billion).

In 2024, Kuda raised $20 million in external funding, achieving a valuation of $500 million. The company issued ₦16.4 billion in overdrafts, marking a 43% increase from the previous quarter, indicating a strong operational performance despite the layoffs.

Severance packages offered to affected employees will vary based on role and tenure, with some individuals potentially receiving up to seven months’ pay. Kuda has committed to supporting those impacted with enhanced severance packages and practical transition support.

The spokesperson stated, “Kuda is evolving how the organization is structured to support the next phase of our growth and scale.” This restructuring is seen as a necessary step to ensure the company can continue to serve its customers effectively while pursuing long-term growth.

As Kuda moves forward, observers are keen to see how these changes will impact its operational capabilities and overall market position. The company aims to align its workforce strategically to meet future challenges and opportunities in the fintech landscape.

Details remain unconfirmed regarding the exact number of employees affected across all departments, but the restructuring reflects a significant shift in Kuda’s operational strategy.

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