BuzzFeed to Furlough Some Staff After Pandemic Crushes Sales

(Bloomberg) -- BuzzFeed Inc. will furlough some staff after the coronavirus pandemic hit revenue even harder than expected, forcing the new-media outlet into another round of cost cuts.

The company will furlough 68 employees beginning May 16, Chief Executive Officer Jonah Peretti said in a memo. It's also extending salary cuts for workers unaffected by the move, and it's exploring the idea of suspending its 401(k) match through the end of the year, he said.

The company -- once seen as a model for how digital upstarts could thrive in a tough market for news -- is seeking to keep its losses under $20 million. BuzzFeed joins a growing group of media companies in paring staff. Everyone from small-town newspapers to giants such as Walt Disney Co. has been furloughing workers and cutting pay.

“The global economic downturn caused by the coronavirus pandemic has inflicted increasing negative impact on our business,” said Peretti, who co-founded the 13-year-old company. “In recent weeks, we have been confronted with even greater revenue declines than expected.”

BuzzFeed is also looking to sublease offices in Minneapolis and Washington and won't be filling about 50 jobs in content and technology that had been open this year. In the U.S., the furloughs will last three months, while timelines varying in international offices.

“We need to lower our costs and change how we operate to get through this crisis,” Peretti said.

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