Eyowo, the digital bank owned by Softcom, has refuted claims that it will be closing down on June 27. Instead, the CEO and founder have clarified that the company is discontinuing a specific product and reducing its workforce by approximately 11%.
Contrary to a report published by the media, Eyowo has denied any plans for a shutdown. The report featured a screenshot of an email sent to employees, implying an impending closure. In the email, reference was made to upcoming layoffs and the phrase “wrapping up Softcom and Eyowo as you know it.”
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Eyowo Denies Claims of Shutdown
However, Eyowo has informed TechCabal that these claims are false. The company’s executives have explained that the email was misinterpreted and clarified that Eyowo is not shutting down. Instead, they are decommissioning Kwiksell, a retail management tool, and consequently downsizing their workforce by eliminating redundant roles.
Omoseindemi Olobayo, the co-CEO of Eyowo, confirmed the email was indeed sent to employees to notify them of significant changes. However, he emphasized that news reports had misconstrued its meaning.
Olobayo stated, “The company is indeed letting go of employees, but the number is 13 out of the current workforce of 110.”
The email published in the media report reveals, “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 clarified to TechCabal that the company itself is not dissolving; rather, it is transforming a different type of business and adopting a new mindset.
Co-CEO Yomi further explained,
“While we initially focused on serving enterprises, we have been evolving into a retail business that provides entrepreneurs and individuals with financial guidance. Today, we have entered a new phase that necessitates a shift from our enterprise DNA to a retail-focused DNA.”
Conclusion
Eyowo confirmed that although the email mentioned dissolving departments, only thirteen employees out of the current 110 will be affected.
They clarified, “We are discontinuing a product, which means certain roles will no longer be necessary. Moreover, when we referred to dissolving departments in the email, it signifies that the team will no longer operate in isolation but will function in a more closely integrated manner.”
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