BuzzFeed, the digital-media company that owns the Huffington Post and Complex Networks, has laid off 180 employees, representing 12 per cent of its staff. The layoffs come as the company grapples with a tough global economic environment.
In a message to affected employees, Jonah Peretti, CEO, BuzzFeed, acknowledged the difficult decision. He noted that these layoffs do not reflect the employees’ hard work over the years. Instead, they stem from BuzzFeed’s need to adapt to economic challenges, refine its strategy, and reassess its costs to ensure long-term survival.
The company cited several factors behind the job cuts. These include challenging macroeconomic conditions, the completion of its integration with Complex Media, and eliminating overlapping roles across teams.
BuzzFeed has also been impacted by shifting audience preferences. The growing popularity of vertical video formats, which are still evolving in terms of monetisation, has strained the company’s advertising revenues. As staff salaries are BuzzFeed’s largest expense, workforce reductions were deemed necessary to lower costs.
The layoffs follow a similar move by CNN earlier this month. The major news network announced significant job cuts, affecting hundreds of employees. CEO Chris Licht described the decision as a “gut punch” and acknowledged it would be a difficult time for all staff members.
Media companies around the world are struggling with advertisers drastically reducing spending due to the global economic downturn. Job losses in the media and entertainment industry have surpassed 3,000 so far this year, with more cuts expected in the coming months.
