Kuda has sparked backlash after sudden layoffs during video call despite improved financials.
NewsOnline Nigeria reports that Kuda is facing criticism after abruptly terminating the contracts of hundreds of employees during a company-wide video call, a move that has raised concerns about transparency and internal decision-making at the fast-growing fintech.
On Wednesday, March 25, staff were invited to what appeared to be a routine meeting with senior executives. Before the call ended, many were informed that their roles had been cut as part of an ongoing restructuring, affecting multiple teams across the organisation.
ALSO: WAEC Releases 2026 First Series CB-WASSCE Results for Private Candidates (How to Check)
The development, first reported by TechCabal, has unsettled current and former employees, some of whom described the process as chaotic and poorly communicated. Several staff reportedly struggled to access the meeting link initially, only to join and receive termination notices shortly after.
In a statement, Kuda defended the decision, describing it as part of a broader organisational realignment. The company said the layoffs were not driven by financial pressure or individual performance but followed a strategic review of its operations and long-term direction.
“Kuda is evolving how the organisation is structured to support the next phase of our growth and scale,” a spokesperson said, adding that the move aligns with industry benchmarks.
However, insiders have questioned that narrative. Sources pointed to recent hiring decisions, including senior-level appointments, suggesting inconsistencies in the company’s workforce planning.
The impact was particularly severe within the marketing team, where nearly half of the unit; 19 out of 40 employees were affected, according to sources familiar with the situation.
Internal documents indicate that the restructuring was aimed at aligning headcount with future priorities, but employees say the lack of prior communication and the manner of execution have damaged trust within the organisation.
Affected workers have been offered severance packages tied to role and tenure, with some expecting up to seven months’ pay. An enhanced exit option reportedly requires employees to sign legally binding agreements that limit their ability to pursue claims against the company.
Strong Numbers, Tough Decisions
The layoffs come despite a period of improving financial performance for Kuda. The fintech has significantly reduced its losses, narrowing 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 also reported strong usage metrics, processing over 300 million transactions worth ₦14.3 trillion and expanding its lending footprint.
CEO Babs Ogundeyi has previously highlighted improving margins and operational efficiency, making the timing of the layoffs a point of contention among observers.
Kuda, which expanded into the UK in 2022 and raised $20 million in 2024 at a $500 million valuation, now finds itself navigating reputational fallout even as it pushes toward long-term profitability.
For many in Nigeria’s fintech ecosystem, the episode underscores a growing tension: as startups mature and chase efficiency, the human cost of rapid restructuring is becoming harder to ignore.
