Big Cabal Media, the Nigerian media startup that owns TechCabal and Zikoko, has downsized its workforce by 19%. The company issued a statement on Monday, explaining that the staff reductions were a response to the challenging market conditions it has been grappling with this year.
This follows a year after securing $2.3 million in funding to amplify its digital offerings. Despite a reported 180% year-on-year revenue surge by the close of H1 2023, this substantial progress fell short of the company’s budgetary projections.
Additionally, the company unveiled plans to downsize Zikoko Citizen, its recently launched governance and politics publication from late last year.
Big Cabal offers support to the departing staff
Consequently, Big Cabal Media stated that most of the Citizen team members were released, with a handful, including EIC Akinyemi Muhammad, being reassigned to different departments within the organization. The company however outlined that the affected staff will be provided with a two-month severance package in lieu of notice.
Additionally, the company expressed its commitment to support the departing employees by offering recommendations to potential employers through recommendation letters and facilitating a smooth transition period.
The company’s past funding
In March of the previous year, Big Cabal Media secured a $2.3 million investment in a funding round led by Mark Venture Capital, an American venture capital firm. In an interview with Nairametrics, Tomiwa Aladekomo, the CEO of the company, discussed the purpose of the funds, highlighting their intended allocation toward technological advancements.
Tomiwa Aladekomo, CEO of Big Cabal Media, explained that the recently acquired funding will be allocated towards product enhancement, workforce growth, and audience engagement.
The company’s plans encompass the expansion of video content with docuseries and short films. They also intend to convert their studio into a creative community hub and launch three new tech products, including the Zikoko app and an upgraded version of Zikoko Memes. Aladekomo emphasized the company’s commitment to cultivating new audiences while maintaining competitive compensation for their team.
Aladekomo emphasized that a significant draw for the company’s investors was its potential for advertising revenue. The impressive 300% year-on-year growth in advertising from the previous year showcased the trajectory for continued expansion at a consistent pace.
This growth trajectory instilled confidence in investors, demonstrating the company’s potential to create a substantial and unique enterprise that can generate returns on their investment. Aladekomo highlighted that these factors were crucial in convincing investors to support the company.
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