With an aim to refocus on its iconic brands, BuzzFeed, a digital-media company, has decided to slash 16 per cent of its workforce. The company has also decided to part ways with Complex, a cultural publisher it acquired over two years ago.
The move announced by Jonah Peretti, CEO, BuzzFeed, in an internal mail, will help the company focus its efforts on increasing profitability and innovation, creating an agile operational business model. Additionally, the changes will enable the company to focus on its popular brands—BuzzFeed, HuffPost, First We Feast and Hot Ones and Tasty.
The mail shared on 21 February, acknowledged the various challenges digital publishers are currently facing. Consequently, it’s necessary to better align with the value and future growth potential of individual brands. Furthermore, it revealed that the job cuts will impact business and administrative teams, aimed at enabling each brand to operate more independently.
The sale of Complex and the workforce reduction are expected to result in approximately $23 million in annual savings. The company plans to utilise the proceeds from the sale to address its debt obligations, positioning itself on a more robust financial foundation for the future.
While these changes provide immediate financial relief, they also usher in a period of uncertainty for BuzzFeed.
Detailed information about the restructuring plan will be disclosed on 28 February, coinciding with employee notifications. Additionally, the mail specified that the restructuring will not impact certain departments, including HuffPost, Tech, BuzzFeed Studios, Tasty, First We Feast (including Hot Ones), and International.
