Layoffs have spread to the media industry.
Numerous media outlets reported that the new American media benchmark, BuzzFeed, plans to lay off 15% employees, which could affect BuzzFeed’s news business. In addition, the new media is seeking to realign its resources and invest more money in more promising areas such as content licensing and video technology.
BuzzFeed’s founder, Mohah Peretti, confirmed the news, saying the layoff involved about 200 people. In a memorandum entitled “difficult challenges,” he said:
“We have a good understanding of what we can do to regroup and focus on what works and achieve the right cost structure.”
It is also a factor in the company’s consideration to promote corporate profits, which is the driving force behind layoffs and avoid refinancing. Peretti said that despite the increase in income, there is still a need to cut costs.
The restructuring will reduce costs and improve the way companies operate, so that they do not have to refinance. According to Crunchbase, BuzzFeed had raised nearly 500 million U.S. dollars by 2016.
The news business is a drag on the company’s financial performance as it has more than 1,300 employees and has basically achieved a revenue target of about $300 million in 2018.
While digital media are struggling to find a sustainable business model, BuzzFeed is just a microcosm.
On the same day that BuzzFeed laid off employees, the media of Verizon media and Gannett also announced that they had laid off more than 1,000 workers.
Verizon media, which owns well-known media such as AOL and Huffington Post, announced on January 23rd that it would lay off 800 people (or 7%) worldwide; One of America’s biggest newspaper companies, Mr Gannett, has announced cuts in costs by laying off more than 20 employees.
In addition, a number of media outlets have experienced layoffs last year.
In November last year, the online publisher MIC agreed to sell itself to Bustle Digital Group for $5 million. Before that, MIC had laid off most of its staff;
In November, Vice media announced that it would lay off up to 15% of its staff because growth stagnated;
In October last year, the digital media Refinery29, which focuses on young women, announced 40 job cuts after failing to reach its target.
At the beginning of last year, Vox announced a reduction of 50 people.