The news organization is losing money, and the company announced on Tuesday that it is downsizing.
The people who asked not to be named said that several large shareholders had urged Peretti to shut down the entire news operation. The website declined to comment.
According to two people, the content division of BuzzFeed News has about 100 employees and loses $10 million a year. The company's full-year content revenue grew 9% in 2021, to $130 million.
A shareholder told CNBC that shutting down the newsroom could add up to $300 million to the stock's market value. In December, the digital media company went public. In its first week of trading, shares fell 40%.
The company reported earnings on Tuesday and the stock of the company fell.
Peretti has been a champion of the importance of the organization for years, calling it good for the world, good for business, and good for our company culture.
The addition of a dedicated business development group and a planned reduction in force are some of the plans to accelerate profitability for BuzzFeed News.
People are spending less time on Facebook.
A person familiar with the matter, who asked not to be named because the decision is private, said that the company has offered voluntary buyouts to fewer than 30 employees. Only reporters and editors who have worked for the company for more than a year can take the offer. The NewsGuild of New York will be made aware of the proposal.
Peretti is trying to make the division profitable. He made the decision to lay off 70 HuffPost staffers after acquiring the company.
Peretti said at the time that they don't have the resources to support another two years of losses. It was difficult to restructure HuffPost to reach profitability more quickly. We want to break even this year.
A person familiar with the organization says that HuffPost is now profitable.
Mark Schoofs, the editor-in-chief, told staff today that he was leaving the company. On an interim basis, henig will run the newsroom.
The deputy editor-in-chief and the executive editor of investigations are leaving. NBC News has a new executive editor.
In its fourth-quarter earnings release, the company said revenue grew 18%. The profit was up 29% from the year before.
Revenue grew 24% year over year. Net income more than doubled from last year.
There is a lot of volatility in BuzzFeed after it went public.
NBC and CNBC are divisions of NBCUniversal.
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