(Bloomberg) -- BuzzFeed Inc. is shutting down its news operation as part of a retrenchment that will result in pink slips for about 180 employees.
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.”
Once a growing online source of news and information, BuzzFeed has stalled in recent months, with advertisers pulling back and revenue in decline. Despite numerous job cuts, the company has been unable to sustain a profit.
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.
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%.
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