Business

Crunched by Cash, Scoopwhoop fires 10-15 Employees

scoopwhoopAccording 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:

We have made a few changes across all levels at Scoopwhoop to ensure we remain efficient, nimble and focused on areas that will deliver on our vision. After a rigorous evaluation process, we have identified certain content genres that are no longer the focus in our next growth chapter. However, less than 10% of our workforce has been affected by this move. In fact, we are in the process of creating new content categories and to support this we will be reinforcing the team with the relevant talent.
We appreciate the contribution of the outgoing employees to Scoopwhoop and remain committed to extending full support and utmost respect as they transition to new opportunities outside the Company.”

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.

Article written by Jesse Woodson

Jesse is a Market Research analyst at Questale. With incredible statistical skills, he helps clients to make informed decisions about their market. To know more about Jesse, write him on [email protected]