Overview
- BuzzFeed disclosed in an SEC filing and internal memo on Monday that it will eliminate roughly 180 roles, about 35% of its workforce, across BuzzFeed, HuffPost and Tasty.
- The cuts follow a May transaction that gave Byron Allen majority control and the CEO title in a $120 million deal funded by $20 million cash and a $100 million promissory note.
- BuzzFeed expects to record $6.5 million to $8.5 million in near-term restructuring charges and to realize $29 million to $32 million in annualized cost savings from the reductions.
- Leadership framed the move as a response to deteriorating ad revenue and losses—recent results showed about a 20% year-over-year drop in ad sales and a $15.1 million quarterly net loss—and said Allen previously invested roughly $26 million to stabilize the business.
- The company will refocus product and content efforts toward free ad-supported streaming and AI-led products with Jonah Peretti heading a new BuzzFeed AI unit and will report quarterly results on August 4 that will show the early financial impact.