Digital bank Eyowo has denied the reports claiming that it is shutting down on June 27. The CEO and founder confirmed that instead, the firm is decommissioning a product and letting go of about 11% of its employees.

The Softcom-owned digital bank Eyowo has denied reports of a shutdown. Earlier today, TechNext published a news report claiming that Eyowo will shut down on June 27. A screenshot of an Eyowo email to employees accompanied the report. The email referenced an upcoming round of layoffs. Part of the email also said, “We are wrapping up Softcom and Eyowo as you know it.” Despite the email’s phrasing, Eyowo told TechCabal that it is not shutting down. The company’s executives clarified that the company is decommissioning a product—Kwiksell, a retail management tool and has let go of employees whose roles have consequently become redundant.

The CEO of Eyowo, Omoseindemi Olobayo, speaking to TechCabal, confirmed that they sent emails to employees about significant changes at Eyowo. He, however, claimed that the news reports making the rounds misinterpreted the email. “The company is indeed letting go of employees, but the number is 13 out of the current workforce of 110,” Seinde said. 

The email published by TechNext read, “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 explained to TechCabal, “The company as an entity is not dissolving but evolving into a different kind of business and mindset.” The CEO Yomi added, “We started out as an enterprise-focused company, but we have been evolving into a retail business that offers entrepreneurs and individuals a roadmap for their money. Today, we stepped into a new phase, which requires changing our enterprise DNA to a retail-focused DNA.”

The company confirmed that although the email mentioned dissolving departments, they are letting go of thirteen employees out of the 110 currently working there. “We are decommissioning a product, and that means some roles will no longer be needed. Additionally, when we mentioned dissolving departments in the email, it signifies that the team will no longer work in silos but will function in a closer and more integrated manner.”

*This is a developing story