BuzzFeed fires 12% of employees

BuzzFeed is laying off 12% of its personnel, or around 180 employees, in an effort to reduce expenses as the online media company deals with challenges like a decline in advertising revenue and the conclusion of its integration of Complex Media.

On Tuesday, the business sent emails to the impacted workers informing them that their employment was ending. CEO Jonah Peretti explained the layoffs in a memo to staff: "In order for BuzzFeed to weather an economic slowdown that I predict will last well into 2023, we must adapt, invest in our strategy to serve our audience best, and restructure our cost structure.

The layoffs were announced by BuzzFeed in an SEC filing on Tuesday. In response to "challenging macroeconomic conditions," the completion of the integration of Complex Media and "eliminating redundancies where they exist," as well as the ongoing audience shift to short-form, vertical video, which BuzzFeed is "still developing from a monetization standpoint," the company said the layoffs are "intended to reduce the company's costs."

In December 2021, BuzzFeed will begin trading on the stock market after merging with a company that specializes in acquisitions. For $300 million as part of the SPAC agreement, BuzzFeed purchased Complex Networks from Verizon and Hearst. BuzzFeed acquired HuffPost from Verizon prior to its IPO. BuzzFeed estimated to have 1,522 employees at the end of 2021.

BuzzFeed reported a 15% increase in revenue to $103.7 million for the third quarter of 2022, helped by Complex Networks. However, its net loss increased to $27.0 million from $3.6 million the year prior. CFO Felicia DellaFortuna stated on the earnings call that it is "clear that advertisers are continuing to exercise caution around spending as a function of strong macroeconomic headwinds" when discussing expectations of a "seasonal lift" in Q4 revenue, but one that would be "somewhat muted" in comparison to prior years. In order to "preserve cash over the coming quarters," she added, BuzzFeed is "focused on further minimizing our cost base."

According to the firm, the majority of BuzzFeed's layoffs took place on December 6, with only a few cases of severance extending until 2023. Restructuring costs are projected to range between $8 million and $12 million, with the majority of those costs falling during the fourth quarter of 2022.

In March 2022, Peretti announced that the company would lay off members of the BuzzFeed video team, the editorial staff at Complex Networks, and staff members on the business and administrative teams in addition to reducing BuzzFeed News' overall headcount by 1.7% moving ahead.

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