BuzzFeed is shutting down its BuzzFeed News operation, with CEO Jonah Peretti writing in a company note that it “can no longer continue to fund” the site.
The company, known for its millennial-friendly site filled with viral listings and videos, said it is also cutting 15% of its employee base, or about 180 workers. BuzzFeed News is the section of the site that produces journalism and news coverage, such as recent articles on Shooting at the Sweet 16 party in Alabama.
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Peretti’s decision comes as BuzzFeed’s revenue plunged 27% in the fourth quarter, sending the company into the red. He stressed the challenges the company faces in the memo, which was sent Thursday morning to his employees, adding that BuzzFeed should cut jobs and reduce spending as a result.
“We’ve faced more challenges than I can count in the past few years: a pandemic, a fading SPAC market that results in less capital, a tech recession, a tough economy, a flailing stock market, a sluggish digital ad market, constant audience and platform shifts,” Peretti wrote in the note. , which was shared with CBS MoneyWatch.
He added, “I made the decision to overinvest in BuzzFeed News because I love their work and their mission so much.”
The company said there are “ongoing discussions about the future of BuzzFeedNews.com” but that it plans to keep the division operating on the site.