BuzzFeed Decides To Shuts Down Newsroom
BuzzFeed News, a Pulitzer Prize-winning digital media outlet, is shutting down as part of a cost-cutting drive by its corporate parent. The move will result in job cuts across multiple divisions, including business, content, tech, and administration. The layoffs, which will affect around 15% of the company’s entire staff, come as digital advertising continues to plummet, cutting into the profitability of major tech companies. This article will cover everything you need to know about the BuzzFeed News shutdown, including the reasons behind it, the impact it will have, and what the future holds for the company.
Why BuzzFeed News is Shutting Down
In a memo sent to staff, BuzzFeed Inc. co-founder and CEO Jonah Peretti cited overinvestment in the news division as the primary reason for the shutdown. Peretti admitted that he failed to recognize early enough that the financial support needed to sustain operations was not there. The decision to shut down the news division comes after BuzzFeed announced earlier this year that it would be cutting 12% of its workforce, citing worsening economic conditions. The company also announced job cuts in December.
The Impact of the Shutdown
BuzzFeed News has about 1,200 total employees, according to a recent regulatory filing, meaning about 180 people will be losing their jobs in the latest cuts. The shutdown will also affect multiple divisions across the company, including business, content, tech, and administration. Christian Baesler, the Buzzfeed Inc.’s chief operating officer, and Edgar Hernandez, its chief revenue officer, are also leaving after they assist with the restructuring. The announcement comes just months after BuzzFeed won its first Pulitzer in 2021 for a series on the infrastructure built by the Chinese government for the mass detention of Muslims.
BuzzFeed’s Future
Despite the shutdown, BuzzFeed will still have one remaining news brand, HuffPost. BuzzFeed Inc. is also working to make sure that any stories currently in progress will be published and promoted on BuzzFeed properties. Journalists who previously worked at BuzzFeed News lamented its end, with Ben Smith, BuzzFeed News’ editor from 2011 to 2020, saying that it “really marks the end of the marriage between news and social media.” However, Peretti wrote in his memo that the changes and improvements the company is making today are necessary steps to building a better future.
