BuzzFeed to Layoff 16% Workforce with Focus on Streamlining Operation

Massive layoffs have become common these days. Several companies in the tech, media, and gaming industries are letting go of their employees. Big giants such as Microsoft, Nike, Twitch, Audible, Amazon, Google, PayPal, eBay and now BuzzFeed have opted for layoffs citing various reasons. In January 2024, approximately 19,350 employees were laid off by companies. Let's explore the reasons behind BuzzFeed's layoffs.

Founded by Jonah Peretti and John S. Johnson III in 2006, BuzzFeed is an internet media company based in New York City. The company made the revelation of cutting down its workforce by 16% blaming the challenging market condition. Peretti informed employees about the reason for this huge decision over email. Peretti wrote, “Digital publishers are facing multiple headwinds in the current market, and our recent revenue performance reflects the fact that a bundled portfolio approach is not aligned with current advertiser or platform trends. More importantly, our performance does not reflect the value or future growth potential of our individual brands. The changes we are making to reduce the size of our business and administrative teams will position each brand to operate more autonomously. Moving forward, we will focus on bringing each of our brands to market with a focus on their differentiation for our advertising and platform partners.”

The company further clarified its decision to let go of such a huge percentage of employees and said that "the cuts are designed to reduce centralized costs and to allow the company to become more agile, sustainable, and profitable". Layoffs are not new at BuzzFeed as in 2023 it announced 15% workforce cuts by firing over 180 employees working across BuzzFeed News and other departments.

Besides layoffs, BuzzFeed also announced that they are selling off Complex to NTWRK for $108.6 million and will continue to reserve 'First We Feast' and 'Tasty'. The announcement further mentioned that the restructuring changes will be communicated officially to everyone on February 28 and the company hopes to save $23 million post these changes.

Peretti's email hinted at good news for the employees working at HuffPost, Tech, BuzzFeed Studios, Tasty, First We Feast, and International as they won't be affected by these layoffs. In total, around 160 people will have to say goodbye to the company. The founders further disclosed to use the funds from the Complex sale to pay off their collective debt and revive their robust financial standing. “The changes we announced today will enable an exciting next stage for our company, with increased focus on our iconic brands. I look forward to sharing more in the coming months," said Peretti.

BuzzFeed also notified their investors about the fourth-quarter revenues which would be $87-$98 million and not the projected $99-$110 million. The revenue figure includes the sale proceedings from Complex. Company's CFO Matt Omer mentioned the reason for less revenue in a statement saying, "During the fourth quarter our experiential business was impacted in the form of lower sponsorship revenues for the brand’s annual flagship event, ComplexCon.” Furthermore, he explained how the changing conditions and increased competition have affected not just their market value but also their sales number. Following this they decide to focus more on operations by reducing it and getting better at advertising.