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| Kuda Bank CEO, Babs Ogundeyi |
Kuda Bank has officially revoked staffs' employment in what the neobank called “a company-wide restructuring”. The layoffs affect multiple departments, including 19 out of 40 employees in the marketing department.
The company-wide layoffs was carried out on Wednesday, March 25, 2026, during a video call meetings organized by the company's senior executives.
The next day, which was Friday, the company sent an email to affected staffs stating that the decision came after a thorough evaluation of the company’s operations and was intended to position it for its next stage of expansion.
This is not the first time Kuda has tightened its cost structure as it shifts from aggressive expansion to a stronger focus on profitability. In 2023, the neobank shut down its UK operations (including Kuda EMI), stepping back from its most prominent international expansion effort.
The bank, which positioned itself as “bank of the free”, also cut down on the heavy use of free transfers, rewards, and other customer acquisition perks that previously drove rapid user growth—all for the purpose of moving towards profitability.
Under the profitability moves, Kuda managed to cut its losses significantly in 2024. The bank brought them down to $5.83 million from $35.11 million that they were in 2023. This significant change was achieved through aggressive cost-cutting and operational changes.
In addition to that, staff expenses fell by nearly half, and other operating costs dropped even more. These show that the company is running a much leaner and more efficient operation. But despite all these, challenges still remain.
Currency fluctuations dragged on overall revenue, which fell 15% in dollar terms, and customer deposits dropped from N96 billion to N83.2 billion.
But the bank didn't count these challenges as barriers. It keeps targeting growth, aiming for 1.7 million monthly active users by 2026. The company is building the targeted users on a registered user base that's already reached 7 million in 2024.
Now the company is laying off employees, saying the move follows a review of “future operational priorities, industry benchmarking, and long-term direction.” The layoff unsettled some staff, who questioned the timing and clarity of the decision, especially after recent senior hires.
However, Kuda is providing affected staff with improved severance benefits, along with assistance to help them transition into their next roles. The benefits vary based on staff's role and tenure.
Some staff can even get up to seven months’ pay. But it's also important to note that these benefits are tied to conditions that require the affected staff to sign a legally binding agreement not to pursue claims against the company.
