BuzzFeed to reportedly lay off 15 percent of its workforce

Posted January 27, 2019

"'Ax falls quickly at BuzzFeed and Huffpost!' Headline, New York Post".

However, some questioned if Peretti was really focusing on the right type of content or just pivoting to softer news, with the journalists cut credited for major stories on Trump's administration, Russia's involvement in the USA election and LGBTQI issues.

Digital media company BuzzFeed has started laying off several employees after it announced it will be cutting 15 percent of its jobs, or about 200 people, to trim expenses and become profitable.

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"The restructuring we are undertaking will reduce our costs and improve our operating model so we can thrive and control our own destiny, without ever needing to raise funding again", Peretti told staff.

The CEO added that the specifics of the changes will be made clearer on Monday. Last week, the site came under fire after it published a story that said President Trump directed his former lawyer, Michael Cohen, to lie to Congress about a proposed real estate deal in Moscow. BuzzFeed has raised hundreds of millions from investors over the past decade, with the most recent investment valuing $1.6bn (£1.2bn).

BuzzFeed News has published impactful political reporting over the past year but has been a drag on the company's finances.

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Verizon acquired HuffPost in 2015 (as a part of AOL), but so far the telecom giant hasn't cut costs enough to make media margins pay off: Verizon also cut 39 HuffPost union members as part of a massive 2.1k-person downsize in 2017.

Although digital ad spending is booming, the industry is dominated by Facebook and Google, leaving news publishers to fight over the scraps.

But Verizon found benefits from integrating those two companies were less than expected. The cuts are also happening as the company attempts to avoid another round of fund-raising.

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BuzzFeed was not the only media company to announce layoffs this week.