BuzzFeed Inc. (NASDAQ:BZFD) is closing its Pulitzer Prize-winning news division as part of a new wave of layoffs that will reduce its headcount by about 15%. In a memo to employees, Jonah Peretti, BuzzFeed’s founder and CEO, said that the company is commencing the process of closing BuzzFeed News and is in discussions with the News Guild about this matter. BuzzFeed shares fell 20% to $0.75 on Thursday.
The End of BuzzFeed News
“While layoffs are occurring across nearly every division, we’ve determined that the company can no longer continue to fund BuzzFeed News as a standalone organization,” said Peretti. The CEO admitted that he overinvested in BuzzFeed News because he loved the platform and its mission.
The CEO cited an array of reasons for the company’s ongoing actions, including a slowdown in digital advertising, the impact of the COVID-19 pandemic, a fading SPAC backdrop, a downturn in the tech market, and difficult macro conditions.
Buzzfeed is removing employees across its business, content, tech, and admin teams. It is also contemplating headcount reductions in certain international markets.
Affected employees would be considered for open roles at BuzzFeed.com and HuffPost, which the company acquired in 2020. Going forward, the company intends to have HuffPost as its single news brand. It highlighted that HuffPost is profitable and has a loyal direct front page audience.
What is the Target Price for BuzzFeed Stock?
BuzzFeed went public in 2022 through a merger with a special purpose acquisition company (SPAC). It has shed 93% of its value since its debut.
Wall Street is sidelined on BuzzFeed, with a Hold consensus rating based on 1 Buy, 1 Hold, and 1 Sell. The stock has an average price target of $1.77.
