BuzzFeed Inc (NASDAQ:BZFD) shares are trading lower Thursday after the company announced it will close BuzzFeed news and reduce its workforce by approximately 15%.
What Happened: In a new regulatory filing, BuzzFeed said it plans to reduce expenses by implementing a 15% workforce reduction. The move comes as part of a broader strategic reprioritization aimed at reaccelerating revenue growth and improving cash flow and profitability.
The workforce reduction is expected to be completed by the end of the second quarter. The company anticipates restructuring charges between $7 million and $11 million.
In a memo to staff, the company also said it will shut down BuzzFeed News as part of the restructuring. Chief revenue officer Edgar Hernandez and COO Christian Baesler will also exit the company.
“We’ve faced more challenges than I can count in the past few years … dealing with all of these obstacles at once is part of why we’ve needed to make the difficult decisions to eliminate more jobs and reduce spending,” BuzzFeed CEO Jonah Peretti said in the memo.
BuzzFeed is scheduled to report first-quarter financial results on May 9.
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BZFD Price Action: BuzzFeed shares were down 23.4% at 72 cents at the time of publication, according to Benzinga Pro.
This illustration was generated using artificial intelligence via MidJourney.
