According to the reports, Scoopwhoop, an internet media and news company, is having its hard times in raising the funds. On the accounts of not being able to manage the cash flows, the company fired 10-15 employees.
Here is the official response from Scoopwhoop that we have got:
In the era of social media evolution, Viral Content Publishing has become a growing business model. The market has seen several entrants like YourStory, The Logical Indian, and StoryPick to name a few. Scoopwhoop has seen a lot of growth since its inception but in recent years, due to a lot of competition, they have not been able to turn into a profitable business.
The company made this decision very clear when the co-founders Sattvik Mishra and Sriparna Tikekar sent out an email to their employees mentioning their intention to curb down the costs of the company by terminating the employment of few of the employees. Following which a few employees were fired on the grounds of low productivity on Monday, 28 November.
The dismissal followed outrage in the company and instilled insecurity in the minds of the employees which also lead to the resignation of Mr. Prakash Pillai, Senior level Manager at the Scoopwhooop. This also leads the managers to think of ‘Right-Sizing’ their teams and take tough calls for the sustainability of the business.
Scoopwhoop’s founders expect the company to turn profitable in next one and a half year. They have been reported quoting to make great progress in that direction. Still, startups shutting down due to the quality of the workforce, over hiring, mismanagement of cash flows is nothing new to the ears. Now only time can justify what happens to the fate of another such company.