On the downturn, BuzzFeed to cut 12 percent of its workforce

BuzzFeed plans to cut about 12 percent of its workforce as part of a cost-cutting measure. The online media company will join an already growing number of US firms that have taken similar actions in anticipation of a potential economic downturn.

CEO Jonah Peretti wrote a letter to affected employees, stating:

“Our revenues are being impacted by a combination of worsening macroeconomic conditions, and the ongoing audience shift to vertical video, which is still developing from a monetization standpoint.

“That requires us to lower our costs. Unfortunately, reducing our workforce is an essential part of cost cutting. Staff salaries are the single largest cost at the company.”

Peretti further added that he expected the downturn to extend well into 2023.