Nu Holdings halves management layers, eyes C-suite hires
SAO PAULO, BRAZIL — Nu Holdings, the parent company of Nubank and one of the world’s largest digital banks, has cut its management layers in half to boost efficiency as it continues rapid expansion.
The move comes as the fintech giant, with over 118 million clients across Brazil, Mexico, and Colombia, aims to stay agile in a fast-growing market.
“We had become too verticalized, with as many as 14 layers,” said CEO and co-founder David Velez in a recent interview.
“There were four layers between me and the senior managers of the products and like 14 layers across the organization, which is too much for an organization that needs to be agile, make decisions quickly, and has so much growth ahead.”
Leadership changes and C-suite plans
The restructuring coincides with the recent departures of several top executives, including Chief Operating Officer Youssef Lahrech and Chief Product Officer Jag Duggal.
Velez will temporarily take on Lahrech’s responsibilities, increasing his direct reports to 15, until new C-level executives are hired in the coming months.
“While that change is painful — and I think from the outside investors look at this change and I understand how it might seem scary — the reality is that all of these changes are very positive,” Velez said.
“We are bringing a new set of executives for the new phase.”
Nu recently announced that former Brazil central bank governor Roberto Campos Neto will join as global head of public policy starting July 1. Departed executives Lahrech and Duggal will stay on as consultants during the transition.
No layoffs, focus on efficiency
Despite the management shakeup, Velez emphasized that there have been no layoffs and none are planned. Some managers have shifted to individual contributor roles, and the company expects to continue hiring this year, “probably double digits,” according to Velez.
Nu’s increased use of artificial intelligence is also streamlining operations, with about 30% of code and 50% of customer service now handled by AI tools.
“It’s a continual rebuilding of the team,” Velez added, noting the need to attract talent with global consumer and technology experience.
