Buzzfeed is closing its news division

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on Apr 20, 2023
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  • Buzzfeed says it can no longer fund its news unit as a standalone organisation.
  • The media company also announced plans of laying off 15% of its employees.
  • Buzzfeed stock is now back to the price at which it started the year 2023.

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Buzzfeed Inc (NASDAQ: BZFD) is in focus on Thursday after CEO Jonah Peretti revealed that the company is closing its news unit.

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Buzzfeed to lay off another 15% of its employees

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Peretti also disclosed that the Nasdaq-listed firm has decided to lay off about 15% of its employees. The job cut will affect roughly 180 people in total.

Buzzfeed had cut 12% of its staff already in December. Addressing the workers in an email today, CEO Peretti wrote:

Changes today are focused on reducing layers, increasing speed, effectiveness of pitches, streamlining product mix, doubling down on creators, and bringing AI enhancements to sales process.

The chief executive had faced pressure from shareholders to wind down news operations that were losing about $10 million a year. Buzzfeed stock is now back to the price at which it started the year.

Buzzfeed is losing its two key executives

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Buzzfeed also confirmed today that Edgar Hernandez – its revenue chief and Christian Baesler – its chief operating officer are quitting as well. Baesler will leave by the end of this month and Hernandez in May. The email reads:

Marcela Martin, our President, will take on responsibility for all revenue functions effective immediately. In the US, Andrew Guendjoian is our new Head of Sales, and Ken Blom will continue as Head of Revenue Operations.

CEO Peretti took responsibility for not managing the company better through the string of challenges in recent years. Buzzfeed will lower its headcount in some international markets as well.

Buzzfeed is expected to lose 28 cents a share this quarter – roughly the same as last year.

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