Macro Conditions Engulf BuzzFeed, To Downsize 12% Workforce

BuzzFeed, Inc BZFD disclosed plans to downsize 12% of its workforce as deteriorating economic conditions and challenges in the digital-media business weighed on its business.
The cuts will impact under 180 employees, primarily across sales, tech, studio production, BuzzFeed.com, and Complex Networks, the Wall Street Journal reported.
“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,” CEO Jonah Peretti wrote.
Also Read: Twitter On A Downsizing Rampage Since Musk Takeover; Terminates Key Ad And Marketing Officials
BuzzFeed, which went public in 2021 via a special-purpose acquisition company (SPAC) merger, said it increased revenue by 15% year-on-year in the September quarter while reporting a loss of $27 million.
In November, BuzzFeed expected revenue to fall at least 8% Y/Y in the fourth quarter.
A variety of forces have forced layoffs across the media landscape.
In recent quarters, BuzzFeed has focused more on its creator network, as people spend less time with the company’s properties and other digital platforms.
However, BuzzFeed sees opportunities to reduce duplicate staff following its acquisition of Complex Networks last year.
BuzzFeed said it had 1,522 employees as of Dec. 31, 2021.
In March, BuzzFeed announced buyouts at its news division and said it planned to cut 25 jobs elsewhere.
Price Action: BZFD shares closed lower by 6.14% at $1.07 on Tuesday.

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