Key facts
- BuzzFeed is laying off approximately 180 employees, representing about a third of its staff.
- The layoffs are part of a restructuring initiated by new owner Byron Allen.
- The goal of the cuts is to reduce financial losses and achieve profitable growth.
- Affected units include HuffPost, Tasty, and BuzzFeed's film and TV studio.
- Founder Jonah Peretti has transitioned to a new role focused on artificial intelligence.
BuzzFeed is implementing significant layoffs, cutting approximately 180 employees, which represents about a third of its staff. The move comes under the ownership of Byron Allen, who acquired a majority stake in the company in May for $120 million. The restructuring aims to reduce the company's financial losses and set it on a path toward profitable and sustainable growth.
In an internal memo, company leadership stated that these changes were necessary despite efforts to manage costs and save jobs. The layoffs affect various units within BuzzFeed, including HuffPost, Tasty, and its film and TV studio. Prior to these cuts, BuzzFeed had fewer than 510 employees.
Founder Jonah Peretti has stepped down as CEO after 20 years and will now focus on artificial intelligence initiatives through a new division, BuzzFeed AI. Allen's investment of approximately $26 million was crucial in stabilizing the company, which had reported substantial debt and a net loss of $15.1 million in its latest quarter, with advertising revenue declining nearly 20% year-over-year.
Allen has expressed ambitions to transform BuzzFeed into a major player in streaming and user-generated content, leveraging its brands and large audiences. Despite the challenges, BuzzFeed remains a significant web publisher with nearly 27.5 million unique visitors to its flagship website in June.