How BuzzFeed is changing the way it works

When BuzzFeed BZFD burst onto the internet in 2006, it had such a major impact on the landscape that it changed the language of the new media permanently.

The brand was known for its millennial focus and pop culture-fueled listicles, but it left a unique footprint on the web. Its offices sang with canary yellow walls, vivid red chairs, and meme-inspired decor. Every writer hoped to work at BuzzFeed one day.

The brand seemed to shine brighter as it moved forward with its award-winning reporting via BuzzFeed News. After 15 years in business, BuzzFeed announced in 2021 that it was going public, which seemed to indicate that even brighter days were on the horizon for the media brand.

Some people told a different story when listening in on social media. It was not the dream that some people thought it would be when they worked for BuzzFeed. In the year 2019 BuzzFeed laid off 15% of its staff, with CEO Jonah Peretti saying in a memo to staff that the company planned to restructure to improve its operating model.

Two years later, more cuts have been announced, and they could threaten the brand in a way it's never had to face before.

What is happening at BuzzFeed, And Why?

During BuzzFeed's first earnings call Tuesday, Jonah Peretti said the company planned to make cuts to its staff to boost its news division's profitability.

BuzzFeed Editor-in-Chief Mark Schoofs also announced his upcoming resignation in an email to staff Tuesday, stating that in order for BuzzFeed to reach its next growth, it would require BuzzFeed News to shrink in size. Schoofs said that BuzzFeed tried to reduce head count through voluntary buyouts rather than layoffs, which suggests he may have taken that deal himself. When BuzzFeed finds a new person to fill the position, Executive Editor Samantha Henig will serve as interim editor-in-chief.

Tom Namako, deputy editor-in-chief, and Ariel Kaminer, executive editor of investigations, are leaving the company. Buzzfeed reported a 24% growth year over year and $600 million earned via commerce content, calling 2021 a year of significant milestones, but it also said it expected a low single-digit revenue decline in Q1.

BuzzFeed's stock had a rough start on its first day of trading. The internet media industry has been a rocky boat on a stormy sea for a while but the pandemic has battered its already thin defenses, leading to major outlets having to either leave employees or let them go altogether, despite some ups and downs today.

In 2020 BuzzFeed was affected as well, first furloughing 74 employees and then eliminating 50 of their jobs altogether. The BuzzFeed News UnionBuzzFeed News Union said that they would have to take a 20% pay cut and work 20% less, although at the time still having a job was a much better option than having none.

After buying HuffPost in February 2021, only three weeks later, Peretti announced that HuffPost Canada would be shuttered and 47 U.S. employees would be cut, and HuffPost's 2020 losses exceeded $20 million.

The company is having problems with other problems as well. The New York Times reported on March 15 that employee complaints had been filed with the American Arbitration Association accusing BuzzFeed of poor execution of its IPO.

Nearly 80 employees say that BuzzFeed did not properly instruct them on how to trade their shares, and they were not able to trade until the price had dropped 60%. They are seeking compensatory damages of more than $8.7 million.