BuzzFeed Inc is about to slack off about 12% of its employees to rein in costs, the online media company notified on Tuesday, as it joins the increasing number of U.S. firms that have taken similar steps in anticipation of a potential economic downturn.
Until Dec. 31, BuzzFeed had 1,522 staffers across six countries, according to a regulatory filing.
Chief Executive Officer Jonah Peretti said in a letter to affected employees, “Our revenues are being impacted by a combination of worsening macroeconomic conditions, and the ongoing audience shift to vertical video, which is still developing from a monetization standpoint.”
“That requires us to lower our costs. Unfortunately, reducing our workforce is an essential part of cost cutting. Staff salaries are the single largest cost at the company.”
The CEO said he expected the economic downturn to extend well into 2023.
Several technology companies, including Meta Platforms, Twitter Inc and Snap Inc, have laid off jobs and scaled back hiring in recent months as higher interest rates, rising inflation and an energy crisis in Europe start to take a toll on the economy.