Market downturn, American digital media company BuzzFeed announced layoffs of 12%

According to news in the morning of December 7, Beijing time, BuzzFeed, a US digital media company, said in a document submitted to the securities regulator this week that it plans to reduce its workforce by 12% in order to cut costs in the depressed economic environment.

BuzzFeed estimates that compensation and other costs associated with layoffs will reach $8 million to $12 million. As of the end of last year, BuzzFeed had about 1500 employees. In March, the company has made a small number of layoffs in its BuzzFeed News division. The layoffs announced this week are expected to affect about 180 employees.

Like other Internet companies, BuzzFeed is facing a decline in the advertising market. Although the company reported an increase in advertising revenue in the third quarter, this was mainly due to Complex Networks, which was acquired in December last year.

BuzzFeed consumed $12.4 million in cash in the first three quarters of this year, compared with a net increase in cash in the same period last year. As of the end of September, BuzzFeed had just $59 million in cash, putting more pressure on cash flow.