Branch Layoff Staff in Nigeria Despite Reporting $30 Million Profit
- Digital lender, Branch, has decided to reduce its workforce in Nigeria and Kenya despite reporting profitability
- Employees were informed of the sack before receiving immediate termination notices
- The fintech said the cuts were not linked to financial distress, and will pay at least four months of compensation
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Branch, a microfinance institution with international operations, has laid off an unknown number of employees in Nigeria and Kenya despite recording an estimated global profit of $30 million in the 2025 fiscal year.
According to the fintech company, the decision affected both countries, as part of moves to optimise operations.
Source: Getty Images
Nigerian staff sacked
TechCabal's severance packages were given to the sacked staff.
According to the workers, the announcement was made during a global all-hands meeting held on April 17, followed by immediate termination emails that took effect on the same day.
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An excerpt of the internal email read.
"Your last day of employment will be today, April 17, 2026."
An ex-employee, however, claimed workers did not expect job cuts after the meeting.
She was quoted as saying:
"We were aware of the company-wide meeting, but we didn't know that people would be laid off."
Other sources also confirmed that the affected workers had their company systems and work email addresses disabled shortly after the meeting.
Branch denied that the layoffs were in response to a lack of cash or the pressure to secure new funding, but also failed to confirm the total number of staff laid off.
A statement from the company read:
"This was not a decision driven by financial distress. Both our Nigeria and Kenya markets were profitable last year, and Branch International declared a global profit of approximately $30 million for the 2025 financial year."
"Both our Nigeria and Kenya markets were profitable last year, and Branch International declared a global profit of approximately $30 million for the 2025 financial year."
The company added while confirming that its African operations were doing well and had substantial cash on hand with no debt across its African entities, BusinessInsider reports.
Source: Getty Images
Despite the reduction in staff strength, affected employees received lucrative severance packages. The terms of their contract stated at least four months' salary, as well as notice pay and payment for unused vacation time. Health insurance was also maintained through the end of 2026.
The company said:
"Employees impacted by this decision were provided with extremely generous severance packages, and we are grateful for their contributions to Branch."
Branch was founded in 2015 and rapidly became one of Africa's biggest app lenders with a variety of digital banking services and loans available through smartphones in Kenya, Nigeria, Tanzania and India.
So far, it has served over 13 million customers, disbursing over 54 million loans worth more than $1.8 billion. Crunchbase reports that Branch raised over $274 million across several funding rounds from investors, including Visa and Foundation Capital.
Nigerian banks raise staff salaries
Earlier, Legit.ng reported that Nigeria’s leading banks are spending more than ever to attract and retain workers as competition for skilled professionals intensifies across the financial sector.
An analysis of the 2025 audited financial statements of Access Holdings, United Bank for Africa (UBA), Zenith Bank, and Wema Bank shows that the four lenders increased their combined workforce by 12.75% to 33,675 employees, while total wages and salaries rose 27.49% to N1.05 trillion.
Source: Legit.ng
