BuzzFeed Slashes Workforce by 16% After Selling Complex in Major Restructuring
People walk past BuzzFeed offices in the Hollywood neighborhood on April 20, 2023 in Los Angeles, California. BuzzFeed News, which won a Pulitzer Prize in 2021 for reporting on the mass detention of Muslims in China, is shutting down as its parent company, Buzzfeed Inc., cuts costs. (Photo by Mario Tama/Getty Images)
BuzzFeed, grappling with financial challenges, has unveiled plans for significant layoffs following the sale of Complex Networks at a notable markdown. The digital media conglomerate, which includes HuffPost among its assets, intends to trim its workforce by 16% as part of a strategic overhaul, projecting annual savings of $23 million. Despite acquiring Complex just over two years ago for $294 million, BuzzFeed sold the majority of it to Ntwrk for $108.6 million, retaining only First We Feast.
CEO Jonah Peretti emphasized the sale’s importance in enhancing BuzzFeed’s financial standing, intending to utilize proceeds to fortify its balance sheet and reduce debt. With shares plummeting since its $1.5 billion IPO in 2021, BuzzFeed’s market valuation dropped to $31.5 million before surging by 130% in after-hours trading.
Peretti assured a focus on BuzzFeed’s remaining brands like HuffPost and Hot Ones, promising a more efficient operational model. This move follows the closure of BuzzFeed’s Pulitzer-winning news division less than a year ago, marking another transformation in its strategic approach amidst evolving market dynamics.
