BuzzFeed to cut 12% of workforce as CEO warns of recession

BuzzFeed will cut about 12 percent of its workforce to cut costs, it said Tuesday, as a growing number of U.S. companies take similar steps in anticipation of a potential economic downturn.

As of Dec. 31, BuzzFeed had 1,522 employees in six countries, according to regulatory filings.

“Our revenues are being impacted by a combination of deteriorating macroeconomic conditions and continued viewership shifts to video, a vertical that is still evolving in terms of monetization,” Chief Executive Jonah Peretti said in a letter to affected employees.

“This requires us to reduce our costs. Unfortunately, reducing our workforce is an important part of reducing costs. “Salaries of employees are the biggest expenses in the company.”

Peretti said he expects the economic downturn to continue into 2023.

Several tech companies, including Meta Platforms, Twitter and Snap, have cut jobs and cut back on hiring in recent months as high interest rates, rising inflation and Europe’s energy crisis begin to hurt the economy.

BuzzFeed shares fell 4 percent to $1.09.


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