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BuzzFeed announced on Tuesday that it will cut its workforce by 12% to “get through the economic downturn,” which it forecasts will last through 2023.
CEO Jonah Peretti told employees in a letter that the digital media company is “letting go of a lot of talented people.”
However, it must adapt, invest in the strategy that best serves its audience and readjust its cost structure in light of “challenging macroeconomic conditions,” the company said in a filing.
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The downsizing, which is expected to be completed during the lean months of the year, is seen as a necessary cost-cutting step.
A photo illustration of a woman holding a smartphone with the BuzzFeed logo on the screen. (Photo illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images)/Getty Images)
“Our revenues are being impacted by a combination of deteriorating macroeconomic conditions and the continued audience shift to vertical video, which is still evolving from a monetization standpoint,” said Peretti. “That requires us to cut our costs.”
Peretti said the workforce reduction is “an essential part of cost reduction” since “employee salaries are the largest single cost in the company.”
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Going forward, the company plans to prioritize areas that are driving growth and move away from those that have less audience engagement, Peretti said. It will also focus on building an even “more robust creator business,” he continued.
“While I believe in the strategy we are pursuing and know that it is necessary to get through the challenging year ahead, that’s no consolation if you’re directly affected,” Peretti said, adding that his focus is on it will “give employees the respect and support they deserve when they leave the company.”
| ticker | security | Last | change | change % |
|---|---|---|---|---|
| BZFD | BUZZFEED | 1.07 | -0.07 | -6.14% |
BuzzFeed’s announcement makes it the latest company to reduce its workforce in recent months.
It was only announced on Monday evening that PepsiCo was laying off employees at the headquarters of its North American snack and beverage division. Hundreds of jobs will be eliminated, people familiar with the matter told The Wall Street Journal.
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Also DoorDash, AMC Networks as well as Amazon and Twitter announced layoffs.
The media industry has also been hit hard recently, as hundreds of industry employees were laid off last week, including those who worked for CNN and Gannett, a company that owns dozens of local media outlets in addition to USA Today.
