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Kuda lays off 5% of their workforce

Discussion in 'Phone' started by Esther A, Sep 22, 2022.

  1. Esther A

    Esther A Member

    Jul 28, 2022
    Likes Received:
    Kuda lays off 5% of their workforce

    Kuda bank which is based in Nigeria and the U.K., has joined the ranks of tech companies in Africa that are pruning their workforce.

    The news of the layoffs, which was first disclosed to TechCrunch by sources, was confirmed by Kuda via email, saying it laid off less than 5% of its 450-strong workforce, or about 23 people.

    The company’s numbers are small compared to other layoffs that have taken place within Africa’s tech ecosystem over the past few months, especially among startups that have raised vast sums of venture capital within the last year

    When Kuda held a town hall meeting last month, cutting down seemingly redundant roles and dismissing non performing staff to reduce costs and extending runway were topics of conversation in light of current macroeconomic trends, according to sources.

    Meanwhile, it was just last August that the digital bank, which provides zero to minimal fees on cards, account maintenance and transfers and is one of Africa’s soonicorns, raised $55 million — money that it planned to use to not only double down on new services for Nigeria but also to prepare its launch into more countries on the continent like Ghana and Uganda

    Kuda’s layoff underscores the growing struggle by tech companies to stay afloat amidst global economic headwinds. Cutting down on running costs has become a key tool employed by companies to sustain growth. For a young startup like Kuda, which has a future full of expansions to face in uncertain new markets, letting go of staff not contributing enough to the company’s growth is a key way to sustain.

    As Kuda positions itself for pan-African and international expansion amidst an uncertain venture capital environment, it depicts the recent cut in its workforce as part of strategic steps for sustainable growth. “Kuda is currently making some strategic changes to serve its customers better and continue to make financial services more accessible, affordable and rewarding to every African,” said the four-year-old company, citing reasons for the layoffs.

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