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| Version 1 | Version 2 |
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| Buzzfeed News to close as media firm cuts jobs | Buzzfeed News to close as media firm cuts jobs |
| (about 1 hour later) | |
| Buzzfeed is to close its news site and cut its workforce by 15%, chief executive Jonah Peretti has said. | Buzzfeed is to close its news site and cut its workforce by 15%, chief executive Jonah Peretti has said. |
| It comes as the digital media company faces serious financial challenges, including a slump in advertising spending. | It comes as the digital media company faces serious financial challenges, including a slump in advertising spending. |
| Calling the decisions "deeply painful", Mr Peretti said he could not invest more in the unprofitable news site. | Calling the decisions "deeply painful", Mr Peretti said he could not invest more in the unprofitable news site. |
| He said the firm would focus on delivering news via the HuffPost, which Buzzfeed took over two years ago. | He said the firm would focus on delivering news via the HuffPost, which Buzzfeed took over two years ago. |
| "Our industry is hurting and ready to be reborn," he said in a memo to staff. "We are taking great pains today, and will begin to fight our way to a bright future." | |
| Founded in 2006, Buzzfeed was once one of the trendiest names in online media, known for its quizzes and viral content, as well as a serious news operation. | |
| But the firm, which employed more than 1,300 people globally at the end of last year, has shifted away from news, as bringing in ad revenue became more difficult and other lines of business, such as producing custom content, grew more quickly. | |
| It listed on the stock exchange in 2021, but raised far less money than it had hoped. | It listed on the stock exchange in 2021, but raised far less money than it had hoped. |
| "While layoffs are occurring across nearly every division, we've determined that the company can no longer continue to fund BuzzFeed News as a standalone organization," Mr Peretti wrote to staff. | |
| The company, which will continue to operate HuffPost, its food brand Tasty, Complex Networks, and its namesake website, had already announced a round of layoffs in December that affected roughly 170 people or 12% of staff. | |
| The latest cuts involve about 180 jobs. Buzzfeed said it expected to incur $7m (£5.6m) - $11m (£8.8m) in severance and other charges connected to the move. | |
| Some of the news staff may find roles in other parts of the firm, the company said. | |
| Shares fell 20% on Thursday on the news, reducing its market value to about $100m (£80m) - a fraction of the more than $1.5bn (£1.2bn) valuation investors were reportedly discussing just two years ago. | |
| "We've faced more challenges than I can count in the past few years," Mr Peretti said. | |
| "But I also want to be clear: I could have managed these changes better as the CEO of this company and our leadership team could have performed better despite these circumstances." | |
| Mr Peretti said he had been "slow to accept" the difficulties of making money from online news dominated by big tech platforms and that the firm should have generated more revenue after acquiring Complex in 2021, which runs the music site Complex and other brands. | |
| Chief revenue officer Edgar Hernandez and chief operating office Christian Baesler are among those leaving the company. | |
| Related Topics | Related Topics |
| Companies | Companies |
| Social media | Social media |
| Media | Media |