BuzzFeed (NASDAQ: BZFD) announced Tuesday that it will be cutting almost 12% of its workforce, around 180 employees. The move comes amid the declining economic climate, its acquisition of Complex Networks, and an audience shift to short-form, vertical video. Shares hit a new low of USD1.06 on Tuesday.
“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,” CEO Jonah Peretti said in a memo to employees.
The company expects to finalize the layoffs by the end of the first quarter. As of March, the company had 1,500 employees.
BuzzFeed went public last year through a special purpose acquisition vehicle, and shares plummeted roughly 40% in their first week of trading. Additionally, in March it cut back its news operation as it strived to make the division profitable.
Peretti wrote, “The path I’m laying out today is the result of a deliberate and collaborative resource allocation review among the leadership team, which prioritizes: Investing in areas that will drive growth, and shifting away from areas with less audience engagement; And, building a more robust creator business, which requires a close conduit between content, business, and tech, and bringing additional skills and tools to the organization,” said Jonah Peretti, CEO of the company.