BuzzFeed will lay off approximately 180 employees across BuzzFeed, HuffPost and Tasty in the first major restructuring since Byron Allen took control of the digital media company earlier this year.
The layoffs were disclosed Monday in an SEC filing, in which BuzzFeed said it had approved a workforce reduction affecting approximately 35% of its employees as part of a broader restructuring aimed at improving the company’s long-term financial performance.
In a memo to employees, which was obtained and viewed by TheWrap, BuzzFeed leadership said the cuts are “required to put our business on a path to profitable and sustainable growth.” The memo noted that the company warned during its March earnings call that there was “substantial doubt” about its ability to continue as a going concern before Allen “quickly stepped in” with an investment of approximately $26 million.
“We’ve been actively managing costs for some time, working through scenarios to save as many jobs as possible,” the memo continued. “Unfortunately, the elimination of certain roles is still required.”
Allen became BuzzFeed’s majority owner and CEO in May after completing a $120 million deal that gave him a 52% stake in the company, replacing founder Jonah Peretti as chief executive. Peretti now leads a newly created BuzzFeed AI division focused on developing AI-powered products and technology.
The restructuring comes as BuzzFeed continues to navigate a difficult digital advertising environment. The company reported a nearly 20% year-over-year decline in advertising revenue in its latest quarterly results, while net losses widened to $15.1 million from $12.5 million a year earlier. BuzzFeed is scheduled to report its next earnings results on Aug. 4.
Allen has said BuzzFeed, HuffPost and Tasty will play a central role in his long-term strategy to build a larger free ad-supported streaming business around Local Now and other digital assets. Monday’s layoffs underscore the challenges facing that turnaround effort as the company looks to reduce costs and return to sustainable growth.
BuzzFeed did not immediately respond to a request for comment.
