Thomas Lyons 
BuzzFeed News, the online source of news and information, is shutting down its news operation as part of a retrenchment that will result in pink slips for about 180 employees. The company has been struggling to sustain a profit despite numerous job cuts. The move comes after advertisers pulled back and revenue declined. Both Chief Operating Officer Christian Baesler and Chief Revenue Officer Edgar Hernandez are leaving as part of the cutbacks, Chief Executive Officer Jonah Peretti said Thursday in a memo to staff.
“We are moving forward only with parts of the business that have demonstrated their ability to add to the bottom line,” Peretti said in the memo. “That means we will no longer be supporting BuzzFeed News as a standalone organization.” BuzzFeed will focus its news operations on HuffPost, which was acquired in 2020 and is profitable, and continue to operate its namesake website, along with the youth-oriented media business Complex, Tasty and First We Feast. Marcela Martin, BuzzFeed’s president, will take over the responsibilities of chief revenue officer. The company will be offering roles elsewhere in the organization to a number of BuzzFeed News employees.
BuzzFeed has been a popular source of news and information for years, but the company has struggled to generate profits from its news division. The decline in revenue and advertiser pullback has forced the company to make tough decisions. The move to shut down BuzzFeed News is part of a larger retrenchment plan that will result in job losses. The company has been unable to sustain a profit despite numerous job cuts.
Shares of BuzzFeed lost 16% to 79 cents in New York trading. The company went public at $10 a share in January 2021. Comcast Corp., a major investor, reported in February that its stake in the company had fallen to 16%. This news comes as a blow to investors who were hoping for a turnaround in the company’s fortunes.
The decision to shut down BuzzFeed News is a major shift for the company, which was once a growing online source of news and information. BuzzFeed’s focus will now be on HuffPost, which was acquired in 2020 and is profitable. The company will also continue to operate its namesake website, along with the youth-oriented media business Complex, Tasty, and First We Feast.
Marcela Martin, BuzzFeed’s president, will take over the responsibilities of chief revenue officer. The company will be offering roles elsewhere in the organization to a number of BuzzFeed News employees. The move is part of an effort to streamline the company’s operations and focus on profitable ventures.
BuzzFeed’s decision to shut down its news division is a major blow to the media industry. The company was once a major player in the online news space, but its decline in recent months has been swift. The move to focus on profitable ventures is a smart one, but it remains to be seen whether BuzzFeed can recover from this setback. The company will need to make some major changes if it hopes to regain its position as a leader in the online media industry.
