As part of a larger effort to turn around the struggling media group and squeeze profits from a company that has lost 90% of its value since it listed in 2021, BuzzFeed is closing down its BuzzFeed News division.
Why it matters: The action highlights the greater pressure on the digital media sector and shines a light on a company that lagged in addressing ways to increase revenues and control costs.
Noteworthy: BuzzFeed News received numerous honors, including a Pulitzer Prize. Publicly, both inside and outside the organization, journalists lamented the closure of the reputable news organization.
The big picture: Once a digital media darling, BuzzFeed has become a cautionary tale for its peers, largely for its decision to go public via a SPAC in 2021. When it listed, the company was worth more than $700 million.
Simultaneous with that listing, BuzzFeed announced it acquired entertainment company Complex Networks.
The stock fell 20% to 71 cents per share on Thursday. Its current market value is around $100 million.
Thursday’s layoffs are the latest in a string of mass job cuts across media over the past year, including multiple rounds of cuts at BuzzFeed. It offered voluntary buyouts to about one-third of the 100 news division employees last year.
Digital media publication Insider announced layoffs of 10% of its staff earlier on Thursday, according to a memo obtained by Axios.