What’s The News?
NEW YORK (AP) – Digital media company BuzzFeed is cutting 15 percent of its jobs, or about 200 people, to trim costs and become profitable.
What Does This Mean?
BuzzFeed CEO Jonah Peretti wrote employees Wednesday that the layoffs will help BuzzFeed avoid having to raise money from investors again.
The privately held company has not been profitable for several years. It has raised hundreds of millions from such investors as Comcast’s NBCUniversal.
The New York company is best known for its viral posts and quizzes and has a well-regarded news division.
Why Does It Matter?
The Bigger Market Picture: “The changes will allow Buzzfeed to be the clear winner in the market as the economics of digital media continue to improve,” said Peretti.”
Many digital media companies have cut jobs or sold off in recent years as Facebook and Google gobble up the bulk of digital advertising dollars. Verizon also said Wednesday it is cutting about 800 jobs in its media division, which includes Yahoo and HuffPost.