BuzzFeed to Cut 35% of Staff Under New Owner Byron Allen

BuzzFeed Inc. is laying off approximately 180 employees, a 35% reduction of its workforce, in the first major restructuring under new majority owner and CEO Byron Allen. The company, which owns HuffPost, Tasty, and BuzzFeed Studios, had about 510 staff before the cuts. In a Monday SEC filing, BuzzFeed projected $29 million to $32 million in annualized savings. An unsigned memo to employees stated the changes are needed to achieve profitable and sustainable growth, noting that after a March earnings call expressing doubt about the company's ability to continue, Allen invested about $26 million. Allen acquired a 52% stake and the CEO role from founder Jonah Peretti in a $120 million deal in May, funded by $20 million cash and a $100 million promissory note. BuzzFeed reported a nearly 20% decline in advertising revenue year-over-year in its latest quarter, with a net loss of $15.1 million, up from $12.5 million. The next earnings disclosure is set for August 4. Allen's Allen Media Group, separate from BuzzFeed, includes The Weather Channel, TheGrio, local TV stations, and streaming services. Peretti will now lead a new division called BuzzFeed AI. BuzzFeed Studios will operate as its own entity under BuzzFeed Inc. Despite the cuts, BuzzFeed had nearly 27.5 million unique visitors to its flagship site in June.