American media and news corporation, BuzzFeed is closing its news division as part of a broader workforce reduction of 15 per cent across multiple teams such as business, content, tech, and admin. The decision comes as the company cannot sustain BuzzFeed News as an independent entity anymore.
Jonah Peretti, CEO, BuzzFeed, shared this decision with the employees via an internal memo. Peretti conveyed in a memo to the staff that he had decided to invest excessively in the news division, but he did not realise that the necessary financial support to maintain the operations was not available. The company will now only stick to its remaining news department, The Huffpost.
He also stated that his attachment to the cause made him reluctant to acknowledge that the prominent social media platforms would not offer enough distribution or financial assistance to sustain top-quality, unrestricted journalism designed for social media.
Reportedly, BuzzFeed has encountered numerous obstacles over the past few years, including the COVID-19 pandemic and a declining SPAC market. Additionally, Edgar Hernandez, CRO BuzzFeed News, and Christian Baesler, COO, BuzzFeed News have also departed from the company. The memo states that these challenges have been substantial and difficult to quantify.
