BuzzFeed Shutting Down Its News Division

BuzzFeed is shutting down its news unit and laying off 15% of its workforce.

CEO Jonah Peretti wrote in an email to staff on Thursday informing about the layoff and shutting down of its news unit.

"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," he wrote.

BuzzFeed's recent round of layoffs will have an impact on various departments including business, content, administration, and tech teams, resulting in approximately 180 employees being affected. This reduction in workforce is significant considering the company's total staff count of around 1,200 people as reported in its most recent securities filing.

The company's stock has decreased by nearly 90%. They were trading at about 68 cents on Thursday and were down more than 27%.

In December 2022, BuzzFeed laid off 180 employees, about 12% of the workforce. According to the company, the layoffs were a result of the difficult economic climate and its acquisition of Complex Networks.

In an effort to make BuzzFeed News profitable, the digital media business reduced its news operation, which led to the resignation of several editors. Last year, the business went public through a special purpose acquisition vehicle, which resulted in a nearly 40% decline in share price in the first trading week.