BuzzFeed Announces Major Changes

BuzzFeed made headlines recently with the announcement of a significant shake-up in its operations. The media giant has agreed to sell its Complex business for a whopping $108.6 million in cash. In addition to this, around 16% of its workforce will be laid off in an effort to increase profitability.

Focus on Core Brands

Complex, a digital publisher known for its coverage of streetwear, music, and pop culture, will be sold to NTWRK, a live-video shopping company. Despite previously acquiring Complex for nearly $300 million, BuzzFeed is now looking to offload it to streamline its operations. This strategic move is expected to help the company concentrate on its core brands such as BuzzFeed, HuffPost, First We Feast, and Tasty.

Workforce Reduction for Long-Term Gains

The workforce reduction, which was also announced recently, is forecasted to result in an annual savings of $23 million. BuzzFeed's plan involves allowing each core brand to operate independently with distinct strategies and revenue streams. By implementing these changes and focusing on sustainable revenue streams with higher margins, BuzzFeed aims to secure a more financially stable future.

Looking Ahead

This latest restructuring announcement comes on the heels of previous cost-cutting measures by BuzzFeed. After shutting down BuzzFeed News last year and slashing staff numbers by 15% in April 2023, the company is now poised to utilize the proceeds from the Complex sale to pay off debts and finance further restructuring efforts.

Stay tuned for more updates on BuzzFeed’s evolving strategy, with additional details set to be revealed on Feb. 28.