Kuda Faces Backlash Over Abrupt Layoffs Amid Growth

Kuda, a fintech company, has come under criticism for its sudden layoffs of hundreds of employees during a routine video call on March 25. This decision was part of a broader organizational restructuring, which the company claims is not driven by financial pressures but rather a strategic review to support future growth.

Despite a significant reduction in losses from $35 million in 2023 to $11 million in 2024 and a revenue growth to 21.2 billion naira, the layoffs have unsettled current and former employees, who described the process as chaotic and poorly communicated. Nearly half of the marketing team, consisting of 19 to 40 employees, was affected.

Employees were offered severance packages but were required to sign legal agreements limiting their ability to pursue claims against the company. Kuda's CEO, Bab Ogundeyi, previously highlighted operational efficiencies, but the layoffs have raised questions about the company's workforce planning, especially given recent senior-level hires.