Nigerian media startup, Big Cabal Media, which owns TechCabal and Zikoko, has recently announced a reduction in its workforce, laying off 19% of its staff. The decision was disclosed in a statement released on Monday, citing challenging market conditions as the primary reason for the layoffs.
This comes just a year after the company successfully raised $2.3 million in funding with the goal of expanding its digital products. Despite experiencing an impressive 180% year-on-year increase in revenue by the end of the first half of 2023, the growth fell short of meeting the company’s budgetary expectations.
As part of its restructuring efforts, Big Cabal Media revealed plans to scale down its newly launched governance and politics publication, Zikoko Citizen. Consequently, the majority of the Citizen team members were let go, while a few, including EIC Akinyemi Muhammad, were reassigned to other departments within the company.
Affected employees will be provided with two months’ severance pay in lieu of notice, and the company expressed its commitment to assist them during the transition period by offering recommendation letters to potential employers.
Last year’s successful fundraising round, led by American VC, Mark Venture Capital, amounted to $2.3 million. Big Cabal Media CEO, Tomiwa Aladekomo, had previously stated that the funds would be invested in technology, product development, and audience expansion. The company had ambitious plans, including the introduction of three new tech products, such as the Zikoko app and Zikoko Memes 2.0, along with transforming its studio into a creative hub for aspiring talents.
