BuzzFeed Scaling Back In News As Several Editors Depart, Some Layoffs Planned

Jonah Peretti, founder and CEO of digital publisher BuzzFeed announced plans to downsize its news business amid the departure of several editors.

Companywide workforce reductions at the digital publisher, which went public last year via a SPAC deal, will impact about 1.7% of its total workforce including small cuts at both BuzzFeed Video and Complex Editorial.

BuzzFeed this morning reported fourth-quarter revenue and net income gains but also said it anticipates sales and profit for the current March quarter will fall year-on-year.

Peretti, in a note to BuzzFeed staff Tuesday, said BuzzFeed News editor in chief Mark Schoofs had decided to leave the company and Samantha Henig would serve as interim EIC. “She and I will talk to BuzzFeed News later today about our plans to position BuzzFeed News to thrive in the current media ecosystem, accelerate its path to profitability, and become a stronger financial contributor to the overall BuzzFeed, Inc. business,” Peretti wrote.

“This means that BuzzFeed News will need to get smaller, which we have reached out to discuss with the union–and to prioritize the areas of coverage our audience connects with most.”

Another top editor, Tom Namako, who had been deputy editor in chief, is joining NBC News as the new executive editor of NBC News Digital, starting on April 25. He succeeds David Firestone, who is retiring

BuzzFeed reported a revenue boost of 18% for the fourth quarter year-over-year to $145 million. Advertising revenue grew by 24% to $69 million; content revenue by 33% to about $60 million; commerce revenue declined 26% to $16 million.

Net profit was up 29% at $41.6 million

The company went public on the Nasdaq last year through a SPAC deal with 890 Fifth Avenue Partners, becoming one of the first publicly traded digital media companies. It also acquired HuffPost and Complex Networks.

The shares closed at $5.27 on Tuesday, up more than 6%. The company’s 52-week high is nearly $15.

Peretti called 2021 “a year of significant milestones.”

“We believe in the internet as a force for good and a catalyst for growth. We are working together with the tech platforms to create sustainable models for good content to thrive. We’ve made real progress in this area, but we see significant room to strengthen the attribution models around premium content in a way that benefits both platforms and content creators. And we are confident in our ability to lead the industry forward as we execute against our long-term growth plans.”

Time spent with Buzzfeed content grew 6% to 789 million hours across our owned and operated properties as well as third-party platforms.

BuzzFeed anticipated revenues to be down by “a low single-digit percentage year-over-year” in the current first quarter — or up 30% excluding the addition of Complex Networks.

It expects adjusted EBITDA losses in the range of $15 to $20 million for the combined company and stock-based compensation expenses in the range of $3.5 to $4.5 million.