For those who thought staff cuts would spare digital media companies, BuzzFeed has something to say!
The company, which has an enviable online and social media presence, yesterday said it will furlough staff as its revenue took hit from the COVID-19 pandemic.
Furloughs in the US will last three months, while timelines vary in its international offices.
Chief Executive Officer, Jonah Peretti, in a memo yesterday, said the company will cut 68 employees starting May 16.
“The global economic downturn caused by the coronavirus pandemic has inflicted increasing negative impact on our business.”– BuzzFeed Chief Executive Officer, Jonah Peretti
This is the company’s latest measure to keep its losses under $20 million, according to a Bloomberg report, and will extend to salary cuts for employees who remain after the dismissals.
It’s also reported that the new media company may suspend its 401(k), a company retirement savings plan, match through the end of the year.
BuzzFeed is just the latest in an increasing number of companies that have made similar moves to contain costs.
Peretti said “The global economic downturn caused by the coronavirus pandemic has inflicted increasing negative impact on our business.”
“In recent weeks, we have been confronted with even greater revenue declines than expected,” said the BuzzFeed co-founder.
BuzzFeed will hold off on filling 50 jobs in content and technology and also look to sublease offices in Minneapolis and Washington.
BuzzFeed had previously announced salary cuts of between five and 25 per cent which began April 1. Peretti had also said he would forgo his salary.