Branch Cuts Headcount Amidst Ecosystem Efficiency Drive

Visa-backed fintech startup Branch has laid off employees in Kenya and Nigeria, marking a new wave of workforce reductions across African tech.

The company reported that both its Nigerian and Kenyan businesses remained profitable in 2025, generating approximately $30 million in global profit for the year. Despite this financial performance, Branch stated it is reducing headcount to improve operational efficiency.

Why Layoffs When Profitable?

Branch’s decision reflects a growing trend where investors prioritize efficient growth over mere profitability. Companies are now under pressure to demonstrate sustainable business models with leaner operations.

Across the African tech ecosystem, we’ve seen similar moves from:

• Zap Africa (crypto trading) laid off 8 of its 18 employees
• Kuda (digital bank) restructured and reduced hundreds of positions
• Quidax (crypto startup) also announced headcount reductions

These layoffs highlight a shift in investor expectations towards capital efficiency, even at companies that are financially successful.

Branch offered affected employees severance packages including multiple months of compensation and extended healthcare benefits.

Broader Implications for African Tech

The latest cuts serve as a reminder that job security isn’t guaranteed even at well-performing companies. As the tech landscape matures, we can expect more businesses to prioritize sustainable growth over rapid expansion, which may involve difficult decisions about workforce optimization.