BuzzFeed laying off 12% of workforce to cut costs amid 'challenging macroeconomic conditions'
BuzzFeed projects economic downturn will extend into 2023
Big Tech preparing for layoffs as recession looms: Mark Mahaney
Evercore ISI senior managing director Mark Mahaney reveals which stocks could outperform if the US economy is hit with a recession on 'Varney & Co.'
BuzzFeed announced Tuesday that it's reducing its workforce by 12% in an attempt to "weather the economic downturn" that it projects will extend into 2023.
CEO Jonah Peretti told staff in a letter that the digital media company is "letting many talented colleagues go."
However, it must adapt, invest in the strategy that serves its audience best and readjust its cost structure amid the "challenging macroeconomic conditions," the company said in a filing.
PEPSICO TO LAY OFF HUNDREDS OF WORKERS IN HEADQUARTERS ROLES
The reduction in its workforce, which is slated to be completed within the thirst few months of the year, is seen as a necessary step in reducing costs.
A photo illustration of a woman holding a smartphone with the BuzzFeed logo displayed on the screen. (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images) / Getty Images)
"Our revenues are being impacted by a combination of worsening macroeconomic conditions, and the ongoing audience shift to vertical video, which is still developing from a monetization standpoint," Peretti said. "That requires us to lower our costs."
Peretti said reducing its workforce "is an essential part of cost cutting" given the fact that "staff salaries are the single largest cost at the company."
LAYOFFS MOUNT AS JOB MARKET GETS MURKY
Moving ahead, the company plans to prioritize areas that drive growth and shift way from ones that have less audience engagement, according to Peretti. It will also focus on building an even "more robust creator business," he continued.
"While I believe in the strategy we’re pursuing, and know it’s necessary to navigate the challenging year ahead, that’s no comfort if you are directly affected," Peretti said, adding that his focus will be giving "employees the respect and support they deserve as they exit the company."
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BZFD | BUZZFEED | 1.60 | -0.07 | -4.33% |
BuzzFeed's announcement makes it the latest company to slash its workforce in recent months.
As recent as Monday evening news broke that PepsiCo was laying off workers at the headquarters of its North American snacks and beverages divisions. Hundreds of jobs are set to be eliminated, people familiar with the matter told The Wall Street Journal.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Additionally, DoorDash, AMC Networks as well as Amazon and Twitter announced layoffs.
The media industry was also recently hit hard as hundreds of industry staffers were laid off last week including those who worked for CNN and Gannett, company that owns dozens of local media outlets along with USA Today.