BuzzFeed Layoffs: Workforce Cut Down by 16%, Complex Network Sold Off

BuzzFeed will be cutting off 16% of its remaining staffers following the sale of its youth-culture media company Complex for $108.6 million.

In a press release on Wednesday, BuzzFeed CEO Jonah Peretti said the sale and job cuts will provide "an important strategic step" for the company to "adapt our business to be more profitable, more nimble, and more innovative."

Affected employees were only notified on the same day as the press letter.

Complex was sold off to Los Angeles-based e-commerce platform Ntwrk which promised to use the media company to build a "next-generation content and shopping experience."

BuzzFeed reasoned the job cuts as part of its corporate restructuring as it plans to get back on financial track. The company expected the layoff to save it $23 million each year.

BuzzFeed Cuts Off More Workers Amid Slow Growth

The recent layoffs are only the continuation of BuzzFeed shutting down its divisions in an attempt to recover from financial losses.

Last year, the company closed BuzzFeed News after over a decade of operation, affecting 15% of its total workforce or 180 employees in the process.

The company has been reported to have lost over 90% of its value from 2021 over failed investments and business decisions.

BuzzFeed was previously valued at $700 million three years ago during its peak, spreading its operations across multiple digital platforms.

Perretti cited that the company's over-reliance on social media has been largely the cause of its decline.

Layoffs Continue to Increase in February

With the layoff in BuzzFeed, the confirmed job cuts in February have surpassed 8,000 roles, according to industry watchdog layoffs.fyi.

While the job cuts have been much lower compared to the same period last year, the continuing trend in the tech industry shows a concerning future for its employees.

Many of the companies listed on the website even reported positive sales growth over the last financial year.

Among the common reasons cited were lower market demand and increasing inflation in the US.