The news that the digital media company was cutting jobs caused the share price to go up.
The first set of results came after the company went public.
According to a memo from CEO Jonah Peretti, the company is laying off about 1.7% of its workforce. The cuts came from the admin and business units of the website. As part of its SPAC deal, BuzzFeed acquired a youth-focused media company called Complex Networks.
The news division of BuzzFeed is being offered voluntary buyouts. According to Perlberg, the newsroom's interim newsroom leader sent a memo saying that the buyouts would be extended to any staff member on its investigations, inequality, politics, or science desks who has been in service for at least a year. The first Pulitzer Prize went to BuzzFeed.
According to CNBC, the news website loses about $10 million a year. Several significant shareholders have urged Peretti to shut down the entire newsroom after the losses at the news division. The shareholder told CNBC that closing the news operation would add up to $300 million in market value.
According to Perlberg, Mark Schoofs said in a memo that the news site would become smaller. Schoofs said he was stepping down on Tuesday.
The next phase is to accelerate the timelines to profitability and undergo a strategic shift so that we will get there by the end of the year. Schoofs wrote in the memo that they hope to reduce their size through voluntary buy-outs.
Insider asked for comment from BuzzFeed, but they did not reply immediately.
On its first day of trading on December 6th, the company was down by more than 10%. On Tuesday, its shares closed about 6.5% higher.
Despite its lackluster performance on the stock market, the market cap of Buzzfeed is still 5% higher than that of Gannett.
That suggests that the market prefers an all-digital media company to one still making a transition from print, according to Rick Edmonds, media business analyst at the Poynter Institute.
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