BuzzFeed, an online media company, is cutting 12% its workforce due to worsening economic conditions.
New York’s BuzzFeed announced the news in a regulatory filing Tuesday. However, it did not specify how many people were being let go. BuzzFeed employs 1,522 people according to FactSet. This would translate into roughly 180 layoffs.
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BuzzFeed is reliant on the services of advertising agencies, which have slashed their spending in an effort to reduce rising costs. Spending on advertising is typically among the most elastic items in a company’s budget and is often the first place to see cuts.
“In order for BuzzFeed to weather an economic downturn that I believe will extend well into 2023, we must adapt, invest in our strategy to serve our audience best, and readjust our cost structure,”Jonah Peretti was the cofounder and CEO of the company. He wrote a letter for staff.
Recent layoffs have been announced by social media companies and others that rely on digital ads, such as Gannett, Snap, and Meta of Facebook.
BuzzFeed reported Tuesday that in addition to changing economic conditions, it also mentioned redundancies among its employees related to Complex Networks integration, a youth entertainment firm, which was acquired by Verizon and Hearst last year for $300m.
BuzzFeed reported that job cuts will be complete by the fourth quarter in 2023. They expect charges for the reduction of 8 million to 12 million dollars. These charges would be booked during the fourth quarter.
BuzzFeed’s shares plunged more than 4% to $1.09 in midday trades. Their trading volume was close to $10 lower than it was two years ago. The company became public in a merger of a special-purpose acquisition company (SPAC).
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BuzzFeed was founded in 2006 by Peretti and is best known for its listicles. It won a Pulitzer for International Reporting last year. Its other brands include Tasty, the world’s largest social food network.
HuffPost is one of the competitors it has bought from Verizon Media, which acquired it in 2020.
This article was written by The Associated Press.
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