BuzzFeed cutting 12 percent of workforce as CEO warns of downturn

Jonah Peretti, founder and CEO of BuzzFeed, poses with staff to have fun the corporate's debut exterior the Nasdaq in December 2021.
REUTERS

BuzzFeed will minimize about 12% of its workforce to rein in prices, the web media firm mentioned Tuesday, because it joins a rising variety of US corporations which have taken related measures in anticipation of a possible financial downturn.

As of Dec. 31, BuzzFeed had 1,522 staff throughout six nations, in response to a regulatory submitting.

“Our revenues are being impacted by a mix of worsening macroeconomic circumstances, and the continuing viewers shift to vertical video, which remains to be growing from a monetization standpoint,” chief govt officer Jonah Peretti mentioned in a letter to affected staff.

“That requires us to decrease our prices. Sadly, decreasing our workforce is a vital a part of price reducing. Workers salaries are the only largest price on the firm.”

Peretti mentioned he anticipated the financial downturn to increase nicely into 2023.

A number of know-how firms, together with Meta Platforms, Twitter and Snap, have minimize jobs and scaled again hiring in latest months as increased rates of interest, rising inflation and an power disaster in Europe begin to take a toll on the financial system.

BuzzFeed shares fell 4% to $1.09.