HuffPost’s parent company, BuzzFeed, announced Wednesday that it will cut 16% of its workforce (the latest in a wave of layoffs by financially struggling media companies) and sell its music and culture-focused site Complex.
The digital media company, once an advertising revenue juggernaut, said the cuts are aimed at “reducing centralized costs and making the company more agile, sustainable and profitable.” .
BuzzFeed declined to comment on the total number of cuts.
The company has fewer than 1,000 employees.
The layoffs will amount to about 150 people, a person close to the New York-based company said. It’s unclear how many of those will appear on HuffPost.
The culling comes about a year after BuzzFeed cut its workforce by 15% and shut down BuzzFeed News, a site known for its bizarre mix of editorial articles, viral cat videos and hard news. .
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The company announced it would sell Complex to livestream shopping platform NTWRK for $108.6 million, plus $5.7 million that will be earmarked for office expenses and severance.
“The sale of Complex represents an important strategic step in adapting BuzzFeed’s business to be more profitable, agile and more innovative,” said Jonah Peretti, CEO of BuzzFeed. Ta.
“This is also an opportunity to unlock greater value for the Complex brand by combining it with NTWRK’s expansive, commerce-driven business.”
BuzzFeed said it would use the cash it received from the sale of the complex to repay debt and strengthen its financial position.
The company said Wednesday that specific details of the reorganization will be announced on Feb. 28, but that it expects to save $23 million annually under the plan.
Chief Financial Officer Matt Omar told investors that fourth-quarter sales were expected to be between $73 million and $78 million, compared with the financial outlook of $99 million to $110 million in November. warned that it would decrease to a range of .
He cited a drop in sponsorship revenue from the brand’s annual flagship event, ComplexCon, and a drop in revenue due to assets being put up for sale.
He also blamed “challenges against our set of go-to-market strategies in a tightening digital advertising market.”
BuzzFeed’s layoffs come as a number of publications, from the Washington Post and Los Angeles Times to Forbes and Sports Illustrated, have all been hit by layoffs.
