Branch Reduces Workforce Despite Financial Success

In a surprising move that underscores changing investor expectations in African tech, Visa-backed fintech lender Branch has laid off employees in both Kenya and Nigeria. While the company reported significant global profits—around $30 million for 2025 alone—this decision signals a shift towards leaner operations and greater efficiency.

The layoffs, which affected an undisclosed number of staff, occurred during a recent all-hands meeting where employees were informed before promptly losing access to internal systems. This follows similar workforce reductions across the African tech landscape in recent months, including at Kuda Bank, Quidax, and Zap Africa—all while these companies remain fundamentally viable.

Why Cut Jobs When Business is Good?

Branch executives explained that this isn’t a reflection of financial struggles but rather an operational realignment. Investors are increasingly prioritizing sustainable growth models with lower cash burn rates, even at profitable firms. The company maintains both its Nigerian and Kenyan businesses remain in the black while seeking to optimize efficiency across markets.

The layoffs highlight a broader shift where profitability alone isn’t enough—companies must demonstrate efficient growth without excessive spending. This resonates with global trends as well, with major tech players like Meta and Cisco also announcing workforce reductions despite healthy financials.

Branch offered severance packages to affected employees including several months of compensation and extended healthcare benefits. The cuts serve as a reminder that even successful companies must adapt to evolving market conditions and investor demands.