In a memo sent by BuzzFeed CEO Jonah Peretti, he announces several significant changes within the company, including a 15% workforce reduction across the Business, Content, Tech, and Admin teams, as well as the process of closing BuzzFeed News.
The memo outlines the difficult decision made by the company in response to various challenges faced in recent times.
Impacted employees, except those from BuzzFeed News, will receive an email from HR detailing the changes.
Employees who received the memo from Peretti have not been affected by the workforce reductions.
Regarding BuzzFeed News, the company has begun discussions with the News Guild to address these actions and their impact on union members.
As part of the changes, both Chief Revenue Officer (CRO) Edgar Hernandez and Chief Operating Officer (COO) Christian Baesler have decided to leave the company.
Peretti expresses his gratitude to both of them for their dedication and passion towards Complex and BuzzFeed, Inc.
Christian will stay with the company until the end of April, while Edgar will remain until the end of May to assist with the transition.
Marcela Martin, the current President, will take on responsibility for all revenue functions effective immediately.
In the US, Andrew Guendjoian has been appointed as the new Head of Sales, while Ken Blom will continue as Head of Revenue Operations.
Globally, International Sales will move under Rich Reid, Head of International and Head of Studio, who will report to Marcela.
More details about these plans will be shared in the Business All Hands meeting next week, and the entire company is invited to attend.
The memo elaborates on the Business Organization’s changes, which include reducing layers in the organization, increasing the speed and effectiveness of pitches, streamlining the product mix, focusing more on creators, and incorporating AI enhancements throughout the sales process.
While layoffs are taking place across nearly every division, BuzzFeed News is being closed as a standalone organization because the company can no longer continue to fund it. As a result, the company will engage with the News Guild to discuss cost reduction plans and the implications for affected union members.
HuffPost and BuzzFeed Dot Com have indicated that they will open a number of select roles for members of BuzzFeed News.
These roles will align with the business goals of those divisions and match the skills and strengths of many BuzzFeed News editors and reporters.
The idea was raised with the News Guild, and further discussions are expected.
Moving forward, HuffPost will be the single news brand, as it is profitable and has a loyal direct front-page audience.
Peretti goes on to explain the reasons behind these painful decisions, mentioning challenges such as the pandemic, a fading SPAC market, a tech recession, a tough economy, a declining stock market, a decelerating digital advertising market, and ongoing audience and platform shifts.
He also admits that he and the leadership team could have managed these changes better and vows to improve in the future.
In the coming months, the company will work to build a more agile and focused business organization with the capacity to generate more revenue.
The news efforts will be concentrated on HuffPost, a profitable brand with a highly engaged and loyal audience less dependent on social platforms.
Editorial teams across all brands will be empowered to do their best creative work, and an interface will be built to package that work and present it to advertisers more effectively.
The company will also bring more innovation to clients by leveraging creators, AI, and cultural moments across BuzzFeed, Complex, HuffPost, Tasty, and First We Feast.
Peretti acknowledges that the situation may seem bleak, but he remains confident in the future of digital media and the company’s ability to succeed.
The company will begin discussing the way forward with each division starting Monday