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BuzzFeed News is ‘beginning the process’ of closing down, CEO tells staff
https://www.whatjobs.com/news/usa/us-business-news/buzzfeed-news-is-beginning-the-process-of-closing-down-ceo-tells-staff
By Nagasunder in US business news, posted April 21, 2023
Buzzfeed CEO Jonah Perett has told staff the company is to close its news division.
Around 180 positions would be affected by the plan to eliminate the news division and reduce the business, content, tech, and admin teams by 15 percent, according to an internal email obtained by The Independent.
Peretti said: “While layoffs are occurring across nearly every division, we’ve determined that the company can no longer continue to fund BuzzFeed News as a standalone organisation,”
Read More: BuzzFeed confirms 180 staff will be laid off as the economy deteriorates
In the email, Mr. Peretti said he had overinvested in BuzzFeed News “because I love their work and mission so much”.
He wrote: “This made me slow to accept that the big platforms wouldn’t provide the distribution or financial support required to support premium, free journalism purpose-built for social media.
He said BuzzFeed would concentrate its journalism efforts on HuffPost, which it acquired from Verizon in 2020. The primary website of the business, Buzzfeed.com, will continue to exist.
Read More: More layoffs planned at Buzzfeed after several editors leave
He claimed the effects of the pandemic, a tech crisis, a challenging economy, and a "decelerating advertising market" had been too much for the digital media organisation to handle.
“We’ve faced more challenges than I can count in the past few years.”
Mr. Peretti started the digital media company in 2006, and in December 2021 it went public through a special purpose acquisition company (SPAC).
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When the news first surfaced, BuzzFeed's stock price fell 16 percent to 78 cents.
Mr. Peretti admitted the leadership team of the publicly traded corporation: "could have performed better despite the challenges in the world."
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Edgar Hernandez, the chief revenue officer, and Christian Baesler, the chief operations officer, are reportedly departing the organisation.
Mr. Peretti said the company has begun talks with the NewsGuild, a journalist union, about remuneration packages.
Journalists from BuzzFeed News may be offered positions at BuzzFeed.com and HuffPost.
“What a ride, 8.5 years,” BuzzFeed journalist David Mack wrote on Twitter.
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The news site was awarded the Pulitzer Prize for International Reporting in 2021 for its coverage of China's Xinjiang internment camps.
This year, the tech industry has been rocked by a weakening economy, rising interest rates, and global uncertainty.
Source: Independent
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