BuzzFeed to shut news unit to focus on HuffPost
BuzzFeed Inc stated it will close its news business in order to centralize its news content in HuffPost and reduce its personnel by 15%, sending the digital media company’s stock down 10% on Thursday.
The second round of layoffs will effect 180 people across business, content, technology, and administration divisions, according to CEO Jonah Peretti in an email to employees. It had already reduced its workforce by 12% in December.
“We’ve faced more challenges than I can count in the past few years,” Peretti added, blaming the pandemic and ensuing economic slowdown for the drop in digital advertising and BuzzFeed’s revenue.
The impacted News employees will be evaluated for available positions at BuzzFeed.com and HuffPost, which it purchased in 2020.
“Moving forward, we will have a single profitable news brand in HuffPost, with a loyal direct front page audience,” Peretti said in a memo to workers.
As part of the restructure, the business announced the departures of Chief Revenue Officer Edgar Hernandez and Chief Operating Officer Christian Baesler. President Marcela Martin will take over all revenue functions immediately.