Eyowo Layoffs: What Happened & Why?

On June 27, 2023, Eyowoon laid off 200 employees, representing 10% of its workforce. This move has sent ripples through the industry.

Headquartered in Lagos, Eyowoon operates in the finance sector. The layoffs come amid challenging economic conditions, prompting the company to streamline operations and reduce costs.

Why did Eyowo have Layoffs?

Eyowo decided to lay off employees due to the decommissioning of its product Kwiksell and a strategic shift from an enterprise-focused model to a retail-focused one. This restructuring made certain roles redundant and necessitated changes in the company's operational structure.

• Decommissioning of Kwiksell: The discontinuation of this retail management tool rendered some roles unnecessary.
• Shift to Retail Focus: Transitioning from an enterprise-focused model to a retail-focused one required a different operational setup.
• Operational Streamlining: The company aimed to integrate its teams more closely, moving away from siloed departments.

Company Statement

"The company is indeed letting go of employees, but the number is 13 out of the current workforce of 110," said Omoseindemi Olobayo, co-CEO of Eyowo.

Olobayo's statement clarifies that the layoffs are not as extensive as initially reported. The decision to let go of 13 employees is part of a broader strategy to transition from an enterprise-focused model to a retail-focused one. This shift necessitates organizational changes, including the decommissioning of the Kwiksell product, which has made certain roles redundant.

Impact on Workforce and Industry

The layoffs at Eyowo have significantly impacted its workforce, particularly affecting roles related to the decommissioned Kwiksell product and departments involved in enterprise solutions. This reduction in employees has streamlined operations but also placed additional responsibilities on the remaining staff.

In the broader finance sector, Eyowo is not alone in facing workforce reductions. Companies like Flutterwave and Paystack have also announced layoffs recently, reflecting a trend of cost-cutting measures amid economic uncertainties.

Looking Ahead

The layoffs signify a pivotal moment for Eyowo, marking a shift towards a more streamlined and retail-focused future. This transition is expected to redefine the company's operational and strategic priorities.

• Enhanced Retail Solutions: Eyowo plans to develop and expand its retail product offerings to better serve small and medium-sized businesses.
• Increased Efficiency: By reducing redundancies, the company aims to improve operational efficiency and agility.
• Focus on Core Competencies: Eyowo will concentrate on its strengths in financial technology to drive innovation and growth in the retail sector.

Get Started with Sunset Today!

Sunset helps startups wind down by handling all legal, tax, and operational burdens, allowing founders to avoid penalties, reduce liabilities, and move on quickly. For personalized guidance and support, contact us to schedule a consultation or learn more. Don't wait—sign up today and try it out!