Kuda, a prominent digital bank operating in Nigeria and the U.K., has reduced its workforce as part of a strategic restructuring effort. The company confirmed the layoffs, stating that approximately 23 employees, or less than 5% of its 450-member team, were affected.Though relatively modest compared to layoffs by other African startups, the move reflects broader industry adjustments. Recent months have seen significant staff reductions across the African tech ecosystem, including 400 layoffs at Swvl, 300 at Wave, and others at startups like 54gene and Vezeeta.
The decision follows internal discussions about improving efficiency, addressing redundancies, and responding to macroeconomic challenges. Sources indicated that cost-cutting and extending operational runway were key topics during a recent company town hall meeting.
Kuda, which raised $55 million in Series B funding last year at a valuation of $500 million, has ambitious growth plans. The funding was earmarked for expanding its offerings in Nigeria and entering new African markets like Ghana and Uganda. Additionally, the bank is eyeing international expansion, with Pakistan as a targeted destination.To support these goals, Kuda has strengthened its leadership team, appointing former Tinkoff executive Pavel Khristolubov as global COO and ex-Revolut executive Elena Lavezzi as chief strategy officer. The company aims to build on its 4 million-strong customer base while navigating a shifting venture capital landscape.In a statement, Kuda emphasized its commitment to delivering accessible and affordable financial services. It described the layoffs as part of broader efforts to streamline operations and ensure sustainable growth. Departments impacted by the reductions reportedly included growth, marketing, and product teams.As the financial technology sector in Africa continues to evolve, Kuda’s strategic adjustments reflect the challenges and opportunities faced by companies navigating a competitive and uncertain economic environment.
