Published: Thu, November 30, 2017
Sports | By Spencer Underwood

BuzzFeed to cut staff as it reorganizes its business side

BuzzFeed to cut staff as it reorganizes its business side

According to the Wall Street Journal, around 100 employees will be let go, with the cuts primarily coming from the business and sales side of the organization, although some editorial staffers in the United Kingdom will also be let go.

Buzzfeed's United Kingdom media reporter, Mark di Stefano, said on Twitter US editor Ben Smith had said 20 staff will be let go at its London office. The company has 1,700 employees worldwide.

In BuzzFeed's first full accounts for its United Kingdom office, which employs 204 staff, it claimed to have doubled turnover but also increased its losses from £109k in 2015 to more than £3.5m in 2016. The group "was built to support direct sold advertising but will need to bring in different, more diverse expertise", Peretti wrote.

"Unfortunately, this means we have to say goodbye to some talented colleagues whose work has helped us tremendously", he said. In the United States we are restructuring select functions of the Business team, including sales, creative, client services, ad solutions and marketing, to better support our diversifying revenue model. He said BuzzFeed intends to make reductions in the United Kingdom across sales and news.

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BuzzFeed, long the poster child for pure-digital growth, is shedding 100 jobs in a significant restructuring, and president Greg Coleman is transitioning into a new, unspecified role.

BuzzFeed will lay off roughly 100 of its 1,700 employees - including 8% of its USA workforce - and diversify its ad business away from native campaigns following reports that the company missed revenue targets of $350 million in 2017, and consequently put its IPO plans on hold.

The Journal reported earlier this month that BuzzFeed, one of the most high-profile digital media operations which has been expanding globally had delayed plans for a public share offering and would miss its revenue target of $350 million by 15 to 20 percent.

"We are well positioned because we will continue to innovate and manage our operations with the focus required to succeed in a tough marketplace".

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