Eyowo, a Nigerian digital bank that simplifies payment and savings, has refuted recent reports claiming that it will shut down operations on Tuesday, June 27, clarifying that it is instead discontinuing a product and reducing its workforce by approximately 11%.
The CEO and founder of Eyowo confirmed that the company is not shutting down but rather decommissioning its retail management tool called Kwiksell, leading to the redundancy of certain roles within the company.
Earlier, TechNext published a news report suggesting that Eyowo would shut down on June 27, accompanied by a screenshot of an email sent to Eyowo employees. The email mentioned an upcoming round of layoffs and stated, “We are wrapping up Softcom and Eyowo as you know it.”
However, Eyowo clarified to TechCabal that these reports were inaccurate. The company’s executives explained that while some employees would be let go due to the discontinuation of Kwiksell, the company itself would continue to operate as usual.
Co-CEO of Eyowo, Omoseindemi Olobayo, acknowledged for a fact that they had indeed sent emails to employees regarding significant changes within the company. However, he clarified that the news reports had misinterpreted the email. Olobayo stated that while the company is reducing its workforce, the number of employees being let go is 13 out of the current total of 110 employees.
The email published by TechNext stated, “We are wrapping up Softcom and Eyowo as you know it. This means all our processes, procedures, responsibilities, and departments have now been dissolved.” Olobayo further clarified that the company itself is not dissolving but rather evolving into a different type of business with a new mindset.
Co-CEO Yomi added that Eyowo has been transitioning from an enterprise-focused company to a retail business, offering financial guidance to entrepreneurs and individuals. This shift requires a transformation from an enterprise DNA to a retail-focused DNA.
Eyowo confirmed that while the email mentioned dissolving departments, it simply signifies a move towards a more integrated way of working rather than operating in isolated silos. The company explained that it is decommissioning a specific product, resulting in the elimination of certain roles. The aim is to create a closer and more collaborative working environment.
“We want to prioritize providing intelligence for better decision-making to our users in their money and life choices, as such we would no longer offer the inventory capabilities of Kwiksell while its payment services remain the same,” a statement on Eyowo’s official twitter handle stated.
“This change will NOT in any way affect our product (Eyowo X) in the market and the capabilities we currently provide our users including the ongoing improvements to restore all services. It would only enhance it with more intelligence.”