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,, 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.
Posted In: NewsPenny StocksManagementMediaBriefs
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