Nigeria and UK-based digital bank, Kuda, has revealed that it has cut its workforce, thereby joining the league of African tech organizations that are cutting down on their team.
Word of the cut-down was confirmed by the company itself through an email which formally disclosed the steps it was taking within its workforce.
The email revealed that Kuda was letting go of about 5% of its capable Four Hundred and Fifty (450) workforce, or at least Twenty-three (23).
When comparing Kuda’s layoff number to that of other tech companies which have done the same in recent times, the amount is relatively small. This has been noticed among startups that have raised large sums of funding from Venture Capitalists within the last months to a year.
Although Kuda’s action might have been expected, even when the organization employed more hands in its team about Two months ago. According to sources, Kuda had held a town hall meeting in August during which topics of letting go of redundant staff to cut down on expenses and reducing cash burnout to optimize cash flow were raised.
In the same vein, the digital bank which offers at most minimal fees on account maintenance, cash transfer, and card charges, and a soonicorn in the African fintech ecosystem, in the month of August 2022, raised funds to the tune of Fifty-five Million US dollars ($55 Million). The company had revealed that the fund will go into its preparation to launch in other African countries which would most likely include Ghana and Uganda.Kuda has raised about Ninety Million US dollars ($90 Million) from notable VCs, it also has its eye on Pakistan as a prospective market location.The layoff and a few strategic staff acquisitions, of the likes of Elena Lavezzi, its new COO, could seem like a strategic step towards its plans to scale its customer base to about Fout (4) Million users.Part of the layoff maile reads, “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,” giving insight to the layoff action.
Sources revealed that the action was made across different departments not excluding the Products, Growth and Marketing department.