BuzzFeed Inc announced plans to close its news division, consolidating its news content within HuffPost, and reducing its workforce by 15%. The news resulted in a 10% drop in shares for the digital media company on Thursday.
In an email to staff, BuzzFeed Inc CEO Jonah Peretti stated that the second round of job cuts will impact 180 employees across various teams, including business, content, tech, and admin. This comes after the company had previously implemented a 12% staff reduction in December.
"We've faced more challenges than I can count in the past few years," Peretti attributed the decline in digital advertising and BuzzFeed's business to the impact of the pandemic and the subsequent economic downturn.
As reported by Business Today, BuzzFeed Inc stated that the impacted news staff would be considered for available positions at both BuzzFeed.com and HuffPost, which the company acquired in 2020.
"Moving forward, we will have a single news brand in HuffPost, which is profitable, with a loyal direct front page audience," Peretti said in the note to employees.
As a part of the restructuring process, BuzzFeed Inc announced that Chief Revenue Officer Edgar Hernandez and Chief Operating Officer Christian Baesler have chosen to depart from the company. President Marcela Martin will assume immediate responsibility for all revenue-related functions.
BuzzFeed, a company that produces news, videos, and online quizzes, was founded in 2006 by Jonah Peretti and John Johnson. In 2021, it went public through a blank-check merger. However, since its debut, the company's shares have experienced a decline of 93% in their value.