The founder and CEO of Buzzfeed informed employees Wednesday that he will have to cut 15 percent of the company’s workforce — or about 250 positions — in a “cost-cutting” move aimed at finding a more successful business model.
â€œIâ€™m so proud of what our team accomplished over the last year, including diversifying our revenue, and growing our business double digits. Unfortunately, revenue growth by itself isnâ€™t enough to be successful in the long run,â€Â Jonah Peretti said in an email to employees.
The news was first reported byÂ The Daily Caller.
â€œThe restructuring we are undertaking will reduce our costs and improve our operating model so we can thrive and control our own destiny, without ever needing to raise funding again.
â€œThese changes will allow us to be the clear winner in the market as the economics of digital media continue to improve,â€ Peretti noted further.
â€œThis week will be tough for all of us and I realize it will be much worse for the people who are losing their jobs.
â€œTo them, I want to say thank you, Iâ€™m sorry our work together is ending this way, and I hope we get to work together again in the future,â€ Peretti added.
The layoffs come about a week after Buzzfeed whiffed on what was supposed to be a “bombshell” story claiming that POTUS Donald Trump told his former personal lawyer, Michael Cohen, to lie to Congress about an alleged deal in Moscow to build a Trump Tower.
No such deal ever got off the ground. But to make matters worse for Buzzfeed, special counsel Robert Mueller’s office took the unusual step of publicly refuting the story as false.
The reporters later admitted that they had not seen evidence proving the allegations, which were based on two anonymous “federal law enforcement officials.” One reporter — Jason Leopold — has been caught in the past fabricating sources and facts.
Buzzfeed continues to stand by its report despite Mueller’s office stating it is “not accurate.”
Never miss a story! Sign up for our daily email newsletter â€”Â Click here!