Big changes are being made at News about BuzzFeedincluding Editor-in-Chief Mark Schoofs stepped down from leadership and made way for company-wide layoffs.
Early Tuesday morning, the announcement was shared internally, ahead of earnings reports that expect the company to be in the red in the first quarter of 2022.
“The next phase for BuzzFeed News is accelerating time to profitability and undergoing a strategic shift so we’ll get there by the end of 2023,” Schoofs wrote in a public email. ty is collected and reviewed by Raw material source. “That would require BuzzFeed News to once again shrink in size.”
Schoofs continued to appear in the email by saying that he expects the acquisition to happen, rather than layoffs.
“We hope to downsize through voluntary acquisitions, not layoffs,” he wrote. “Also: This is not your fault.”
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Elsewhere in the email, Schoofs writes that BuzzFeed News will set out under new leadership with the specific goal of “financial stability.” “Under Jonah’s leadership, the company has subsidized BuzzFeed News for many years,” noting that “the next phase for BuzzFeed News is accelerating progress to profitability and undergoing a transformation. strategy for us to get there by the end of 2023.”
During the earnings call, BuzzFeed posted revenue of $398 million, short of the expected $520 million shared with investors. The earnings shortfall shows that the digital publishing giant has failed to hit the 31% mark.
BuzzFeed has seen less-than-ideal finances throughout the pandemic, prompting management to take a pay cut of up to 25% in March 2020.
“Employees in the lowest quintile — including anyone earning less than $65,000 annually — will receive a 5% cut, while those earning between $65,000 and $90,000 will receive a 7 percent cut.” The Daily Beast reported at the time. “Other employees will experience a pay cut of nearly 10 percent, while executives will take a 14 to 25 percent pay cut.”