BuzzFeed cuts 12% of staff citing worsening econ conditions

Dec 6, 2022, 12:22 PM | Updated: 1:00 pm
FILE - The entrance to BuzzFeed in New York is seen on Nov. 19, 2020. BuzzFeed is cutting 12% of it...

FILE - The entrance to BuzzFeed in New York is seen on Nov. 19, 2020. BuzzFeed is cutting 12% of its workforce, citing worsening economic conditions. (AP Photo/Ted Shaffrey, File)

(AP Photo/Ted Shaffrey, File)

NEW YORK (AP) — Digital media company BuzzFeed is cutting 12% of its workforce, citing worsening economic conditions.

The New York company, which made the announcement in a regulatory filing on Tuesday, did not disclose how many workers it was letting go. According to the data firm FactSet, BuzzFeed has 1,522 employees, which would mean roughly 180 of them would be laid off.

Advertisers, on which BuzzFeed relies, have broadly pulled back spending to address rising costs. Spending on advertising is typically among the most elastic items in a company’s budget and is often the first place to see cuts.

“In order for BuzzFeed to weather an economic downturn that I believe will extend well into 2023, we must adapt, invest in our strategy to serve our audience best, and readjust our cost structure,” Jonah Peretti, co-founder and CEO, wrote in a letter to staff.

Social media and other companies who rely on digital advertising have also recently announced layoffs, including Facebook parent Meta, Twitter,Snap and Gannett.

In addition to economic conditions BuzzFeed on Tuesday cited redundancies in its workforce related to the integration of Complex Networks, a youth entertainment company, which it acquired last year from Verizon and Hearst for $300 million.

The job cuts are expected to be completed by the end of the first quarter of 2023, BuzzFeed said, and expects charges related to the job cuts of between $8 million and $12 million. Those would be booked in the fourth quarter of this year.

Shares of BuzzFeed fell more than 4% in midday trading, to $1.09 each. They traded close to $10 less than two years ago, when the company went public via a merger with a special purpose acquisition company (SPAC).

BuzzFeed, founded by Peretti in 2006 and initially known for listicles and online quizzes, has established itself as a serious contender in the news business, winning a Pulitzer last year for international reporting. Its other brands include Tasty, the world’s largest social food network.

It has been buying up competitors, including HuffPost, the media outlet founded in 2005 as The Huffington Post, from Verizon Media in 2020.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Elon Musk leave the Phillip Burton Federal Building and United States Court House in San Francisco,...
Associated Press

Elon Musk’s Tesla tweet trial delves into investor damages

SAN FRANCISCO (AP) — An Elon Musk tweet declaring he had the financing to take Tesla private in 2018 caused billions of dollars in investor damages after the deal collapsed, according to estimates presented Tuesday at a trial examining the haphazard handling of the buyout proposal. The mind-bending estimates laid out by two experts hired […]
17 hours ago
FILE - A plane takes off from Harry Reid International Airport near casinos along the Las Vegas Str...
Associated Press

Reports say 2022 was good for Nevada casinos, Vegas tourism

LAS VEGAS (AP) — The year 2022 was good for gambling and tourism in Nevada, where winnings at casinos statewide set calendar year records and Las Vegas visitor tallies nearly reached levels before the coronavirus pandemic. “Las Vegas enjoyed a robust recovery trajectory across core tourism indicators in 2022,” the regional Convention and Visitors Authority […]
17 hours ago
Elliot Morehead, 16 of Sioux Falls, tells a House Health and Human Services committee Tuesday, Jan....
Associated Press

S. Dakota lawmakers push bill to bar transgender youth care

PIERRE, S.D. (AP) — A state House committee voted Tuesday to advance a bill that would ban gender-affirming care for transgender youth in South Dakota. Supporters argued a bill barring youth from accessing puberty blockers, hormones and surgery would protect adolescents from irreversible damage, while opponents argued it only blocks them from becoming their authentic […]
17 hours ago
FILE - Dozens of tribe members and other protesters beating drums and waving signs rally in front o...
Associated Press

GM conditionally OKs $650M Nevada lithium mine investment

RENO, Nev. (AP) — General Motors Co. has conditionally agreed to invest $650 million in Lithium Americas Corp. in a deal that will give GM exclusive access to the first phase of a mine planned near the Nevada-Oregon line with the largest known source of lithium in the U.S. The equity investment the companies announced […]
17 hours ago
FILE - Travelers wade through the line to drop off bags at the Southwest Airlines check-in counter ...
Associated Press

Lawmakers aim to raise penalties for US airline disruptions

Senators who want to impose tougher penalties when U.S. airlines strand or delay passengers say they finally might be able to turn their ideas into law because of outrage over debacles like the one at Southwest Airlines in December. Democrats Richard Blumenthal of Connecticut and Edward Markey of Massachusetts said Tuesday they will again offer […]
17 hours ago
FILE - President Joe Biden, right, at the top of a meeting with congressional leaders to discuss le...
Associated Press

Biden, McCarthy, once breakfast mates, wrangle over US debt

WASHINGTON (AP) — Not so long ago, Joe Biden and Republican leader Kevin McCarthy used to talk things over at breakfast in Biden’s vice presidential home at the Naval Observatory. Biden was intent in those days on “keeping up relations with the opposition party,” as he writes in his memoir, and the new House majority […]
17 hours ago

Sponsored Articles

...
Fiesta Bowl Foundation

Celebrate 50 years of Vrbo Fiesta Bowl Parade magic!

Since its first production in the early 1970s, the Vrbo Fiesta Bowl Parade presented by Lerner & Rowe has been a staple of Valley traditions, bringing family fun and excitement to downtown Phoenix.
...
Day & Night Air Conditioning, Heating and Plumbing

Prep the plumbing in your home just in time for the holidays

With the holidays approaching, it's important to know when your home is in need of heating and plumbing updates before more guests start to come around.
(Photo via MLB's Arizona Fall League / Twitter)...
Arizona Fall League

Top prospects to watch at this year’s Arizona Fall League

One of the most exciting elements of the MLB offseason is the Arizona Fall League, which began its 30th season Monday.
BuzzFeed cuts 12% of staff citing worsening econ conditions