BuzzFeed to lay off 200 staff as millennial media firm struggles to make profit

Latest round of cuts come as Verizon – owner of HuffPost, Yahoo, and AOL – also trims staff numbers

Buzzfeed, which produces viral content as well as news and in-depth investigative journalism, generated more than $300m (£229m) in revenue last year but still loses money (Reuters)

BuzzFeed is cutting 15 per cent of its staff as it attempts to turn a profit in a challenging digital advertising market.

The cuts will affect about 200 employees and come after a number of other media companies have announced layoffs.

Telecoms conglomerate Verizon, owner of HuffPost, Yahoo, and AOL, said on Wednesday that it would cut about 800 jobs. Gannett, which owns a host of US print publications has also laid off journalists.

BuzzFeed chief executive Jonah Peretti said in a note to staff on Wednesday evening: “I’m writing with sad news: we are doing layoffs at BuzzFeed next week.

“We will be making a 15 per cent overall reduction in headcount across the company. I’m sending this tonight because I wanted you to hear it from me directly instead of from the press.”

BuzzFeed has been hailed as a model for the future of media in the digital era. It has grown rapidly and attracted millions of dollars of funding but, as with many digital publishers, has struggled to make its business model financially sustainable.

“The 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,” Mr Peretti said.

“These changes will allow us to be the clear winner in the market as the economics of digital media continue to improve.”

He added: “Even though I’m confident this is the right business decision, it is upsetting and disappointing.”

More detail about the cuts is to be relayed in the coming days, Mr Peretti said.