NAIROBI, Kenya — In a move signaling both technological triumph and tough transition, digital lending platform Tala has announced the layoff of 28 employees from its customer operations department, citing a significant shift in borrower behavior—specifically, more customers choosing to manage their loan repayments independently.
And when 95pc of your users decide to skip the helpline and handle their loans on their own? It starts to look a lot like automation is winning.
According to Tala, the job cuts represent “less than 3pc” of its total workforce and come as part of a broader strategy to channel resources toward market expansion and product development. But behind the clean corporate phrasing is a stark reality: people just aren’t calling customer service like they used to.
The sharp uptick in self-managed loan repayments—up 95pc—has reduced the demand for manual support, effectively shrinking the workload for customer operations.
“This reflects a maturing user base that’s becoming increasingly independent,” Tala said in a statement. “We remain committed to treating all affected staff with dignity through this process.”
In the news: Tala has declared 28 positions in the customer service department redundant , due to customers successfully choosing & managing their own loan repayments, resulting in over 95% loan repayment rates. Tala has at least 150 employees in Kenya, and 600 globally.
A letter addressed to Kenya’s Ministry of Labour and Social Protection, outlines the legal framework Tala is following. Operating locally as Inventure Mobile Ltd., the company noted its intent to declare specific roles redundant under Section 40 of the Employment Act, 2007.
The positions affected include:
- 23 Customer Recoveries Advocates
- 10 Customer Care Advocates
- 8 Senior Customer Recoveries Advocates
- 1 Process Analyst
- And several others
In total, Tala initially indicated that 55 positions could be made redundant, though only 28 layoffs have so far been confirmed.
General Manager Annstella Mumbi noted that the company began the legally mandated 30-day consultation with affected staff, which started simultaneously with the notification to the government.
As required by law—and perhaps as a nod to preserving goodwill—Tala says it’s offering comprehensive severance packages. These include:
- Salary payments through the final day of employment
- One month’s salary in lieu of notice
- Ex gratia payments, as outlined in the Employment Act
It’s a delicate balancing act: streamlining operations without sacrificing human dignity. And Tala insists it’s playing by the book.
The shift comes as fintech firms globally face pressure to do more with less. Streamlining staff while keeping customer satisfaction high is now a key performance metric—not just a bottom-line decision.
While job losses are never easy news, Tala’s restructuring highlights a broader trend: users are growing more comfortable managing their own financial journeys.
And when nearly every borrower starts repaying loans without assistance, the company’s tech investment seems to be paying off—just not for everyone.
