Kuda Technologies Limited, a Nigerian digital bank supported by international investors, has cut jobs across multiple departments as part of a company-wide restructuring, despite reporting improvements in its financial performance.

The layoffs impacted several teams, including marketing, where 19 out of 40 employees were affected, two staff members said.

In a statement emailed Friday, a Kuda spokesperson said the decision came after a strategic business review and was intended to position the company for its next phase of growth, according to BusinessDay.

“Kuda is evolving how the organisation is structured to support the next phase of our growth and scale,” the spokesperson said.

The company said the layoffs were driven by shifts in operational priorities, not by financial difficulties or employee performance.

Employees were informed that the company had evaluated its future direction and industry benchmarks before restructuring certain departments.

The company said the move was intended to align its workforce with long-term objectives.

The layoffs come as many African fintechs pivot from aggressive growth to focusing on profitability and operational efficiency after years of venture funding.

Kuda, which serves around seven million customers, has been reducing its losses, narrowing them to $5.83 million in 2024 from $35.11 million in 2023, supported by stronger results in its Nigerian operations and lower operating expenses.

The fintech has also seen significant growth in transaction activity.

In its most recent public update, Kuda reported processing over 300 million transactions worth about N14.3 trillion and issuing N16.4 billion in overdrafts, a 43 per cent increase from the previous quarter.