BuzzFeed, the New York-based digital media company, plans to cut about 12 per cent of its workforce, says a CNBC report. That means, nearly 180 employees will be affected, primarily across units such as sales, tech and studio production.
This is just another addition to the growing number of US firms that are reducing headcount in anticipation of a potential economic downturn. It is reported that BuzzFeed ‘s decision to downsize was taken in response to tackling the challenging economic conditions, its acquisition of Complex Networks and an ongoing audience shift to short-form, vertical video.
In a memo to employees, Jonah Peretti, CEO, BuzzFeed said that the economic downturn is expected to extend into the next year, that is, 2023, and this decision to downsize had to be taken “to readjust our cost structure”, adapt and be in a better position to “serve our audience best”.
Peretti plans to invest in segments that will drive more growth in order to create a more robust content creator business. (not clear)
The Company reportedly plans to cut most of the jobs by March 2023 or the end of the first quarter. BuzzFeed went public last year through a special-purpose acquisition vehicle, and the stock dropped significantly in the first week of trading. The business reduced its news operation in March in an effort to turn the division profitable. Several senior editors quit as a result of the restructuring.