In a surprising turn of events, Buzzfeed recently announced that it would be laying off 100 of its US-based staffers, which accounts for 8 percent of its total workforce in the country. Additionally, Buzzfeed will also be laying off an undisclosed number of employees in the United Kingdom. Considering that Buzzfeed has a total of 1,700 staffers across all its offices, this move signifies a significant shake-up for the company.
Unraveling the Reasons Behind Buzzfeed’s Layoffs
The primary reason behind Buzzfeed’s decision to lay off such a large number of employees is the financial challenges it has been facing. The company needs to make changes to its revenue-generating operations as soon as possible to ensure its continued existence. Buzzfeed’s financial struggles are evident in its failure to meet its revenue targets for 2017, with some speculating that it could be off by as much as 20 percent. This setback is particularly detrimental for Buzzfeed, as it means that the company will have to postpone its planned IPO launch.
As a result, Buzzfeed is making significant changes to its operations. For instance, the company has announced that it will be reevaluating its advertising model. Buzzfeed is well-known for its native advertising, which is advertising that seamlessly blends in with the rest of the content on a platform. However, it appears that native advertising is not proving to be as profitable for Buzzfeed as initially anticipated. Many people took note of Buzzfeed’s foray into programmatic advertising earlier in 2017, which was correctly interpreted as a sign that the company was struggling to generate enough revenue. Interestingly, on the US side, Buzzfeed is only cutting members of the business team, while the UK side will also see some editorial team members let go.
What’s Next for Buzzfeed?
The layoffs are just the first step in Buzzfeed’s efforts to strengthen its position. While reducing costs is essential, the company also needs to bring in new people with the skills necessary to help them navigate their new course of action. To that end, Buzzfeed has announced its intentions to hire new staffers with the required skill sets. However, there is no guarantee that Buzzfeed’s new approach will succeed where its previous strategy failed, making it intriguing to see how the company fares moving forward. As the digital media landscape continues to evolve, there will undoubtedly be no shortage of news about Buzzfeed’s restructuring efforts and the impact they have on the company’s future.
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