(Bloomberg) -- BuzzFeed Inc. is eliminating 15 percent of its headcount across the company, the latest pullback for digital-media sites dealing with a challenging advertising market.
As it trims staff, BuzzFeed has been examining the βthe evolving economics of digital platforms,β Chief Executive Officer Jonah Peretti said in a memo to employees. βWe've developed a good understanding of where we can consolidate our teams, focus in on the content that is working, and achieve the right cost structure.β
The cutbacks are part of a wave of media layoffs. Verizon Communications Inc. said earlier Wednesday that it would be cutting about 7 percent of its digital-media operations, a business that includes AOL, Yahoo and the Huffington Post. Gannett Inc. also has been laying off journalists from its collection of newspapers.
BuzzFeed, a pioneering site that spans hard news, personality quizzes and listicle-style features, was long seen as a way for journalism to prosper in a post-print era. But growth alone hasn't been enough to ensure success, Peretti said in his memo.
βDisappointing'
βThe restructuring we are undertaking will reduce our costs and improve our operating model so we can thrive and control our own destiny, without ever needing to raise funding again,β he said. βThese changes will allow us to be the clear winner in the market as the economics of digital media continue to improve.β
The Wall Street Journal previously reported on the cuts, saying they would amount to about 250 jobs.
In his memo, Peretti promised to share more about the company's plans in the next few days.
βEven though I'm confident this is the right business decision, it is upsetting and disappointing,β he said.
To contact the reporter on this story: Gerry Smith in New York at gsmith233@bloomberg.net
To contact the editor responsible for this story: Nick Turner at nturner7@bloomberg.net
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