BuzzFeed is shutting down its eponymous news division, which earned a reputation for its journalism but fell prey to the harsh economics of digital publishing that has put many of its peers down.
BuzzFeed CEO Jonah Peretti said in an email to employees Thursday that BuzzFeed News will be shutting down as part of the company’s broader cuts. people will be affected, some of whom will be offered jobs in other parts of the company.
BuzzFeed’s decision is the latest in a string of financial setbacks facing digital media companies. After being the focus of investment from mega-optimists and industry giants like Disney and Comcast, new media companies such as BuzzFeed, Vox Media and Vice have failed to live up to their previously high valuations.
As the entire media industry focuses on streaming, digital advertising (the mainstay of digital publishing companies) is increasingly moving to technology platforms such as Instagram and TikTok.
Also on Thursday, Insider announced it would lay off 10% of its workforce. Buzzfeed’s layoffs affect his 15% of the company’s workforce, or about 180 across its business, content, technical and management teams.
BuzzFeed was part of a growing media company that took advantage of its technology platform to deliver stories to audiences and bet on lasting profits. But while tech giants such as Meta, Alphabet, and Bytedance saw most of the value from the large audiences their platforms attracted, the benefits implied by the large audiences never materialized.
In a memo, Mr. Peretti said he had “decided to overinvest” in BuzzFeed’s news division. He liked the work BuzzFeed’s news division produced, but he didn’t want the financial support needed to make BuzzFeed social. news.
“I have learned from these mistakes, and the teams moving forward have learned from them as well,” Peretti wrote. “We know the changes and improvements we are making today are necessary steps to build a better future.”
BuzzFeed will continue to publish news on HuffPost, which Peretti said in a memo will be more profitable and less reliant on social platforms. He added that the company is moving forward “only those that have demonstrated the ability to increase the company’s revenue.”
A loss-making arm of the company, BuzzFeed News was launched during the run-up to the 2012 presidential election and has become a beacon for up-and-coming political and investigative journalists.site 2021 Pulitzer Prize Winner For international coverage of an article that used satellite imagery to report on the detention of Muslims by the Chinese government.
BuzzFeed News won accolades for its investigative work, became a 2017 Pulitzer Prize finalist, and published a company’s dispute resolution process, alleging it ignored some of the norms followed by traditional competitors. I have also been criticized.
2017, BuzzFeed It was published A dossier full of unconfirmed information about newly-elected President Donald J. Trump. The company’s decision to release the documents was criticized by some media commentators, who said it was irresponsible to release the information without extensive scrutiny. He defended the decision, stating that ordinary citizens have a right to information circulating at the highest levels of power in Washington.
That same year, BuzzFeed News was sued by a Russian executive named in the document. essay He’ll do it again for the Atlantic on Thursday.
Smith, who left BuzzFeed News in 2020 to become a media columnist for The New York Times, said in an interview that he was “really sad” about the closure.
“While we are proud of BuzzFeed News’ achievements, we believe this moment is part of the end of an entire media era,” said Smith, who now runs media outlet Semafor. “This is the end of his media and news marriage to social.”
Newsroom employees had been told not to come to the office on Thursdays. After the announcement, Mr. Peretti held an all-hands video conference, with some members of the management team attending from a New York conference room unfortunately labeled “Doomsday Operations,” said Mr. Peretti, speaking on condition of anonymity by answering the phone. Discussing internal issues, according to BuzzFeed staff. Mr Peretti told workers he had let them down, staff said.
“Obviously it was a big mistake on my part and I deeply regret it,” Peretti said at the meeting, according to people familiar with the matter.
Asked if he would resign, Mr. Peretti said he would remain with the company.
“I will make this decision,” Peretti said, according to a person who attended the meeting. “What’s happening today is not about the work of this team.”
BuzzFeed’s Chief Revenue Officer Edgar Hernandez and the company’s Chief Operating Officer Christian Baesler are stepping down, but have agreed to stay on during the transition period.
BuzzFeed’s shares, which went public in late 2021 through a deal with a special type of shell company, are down more than 20% in intraday trading to about 70 cents a share.
A BuzzFeed spokesperson said the company plans to permanently archive all articles published by its news division on its website.
BuzzFeed News signed Thursday in the somewhat unscrupulous way it has become famous over the past decade.
“BuzzFeed News is logging off with a notification that Blippi pooped on a friend,” read an Apple News push notification from BuzzFeed. story About the actors who play characters in the news outlet’s notable children’s shows.
