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BuzzFeed (NASDAQ:BZFD) shares ticked modestly higher Tuesday, following news the company will be cutting its workforce by approximately 12% to reduce expenses.
The company cited three reasons for the cuts:
(i) challenging macroeconomic conditions;
(ii) completing the integration of Complex Media, Inc. d/b/a Complex Networks and eliminating redundancies where they exist in both functions and teams; and
(iii) an ongoing audience shift to short-form, vertical video, which is still developing from a monetization standpoint.
Buzzfeed expects to complete the workforce reduction plan by the end of the first quarter of 2023.
In connection with the workforce reduction, senior executives subject to the Company’s Change in Control and Severance Plan will receive severance in accordance therewith, contingent on their execution of a separation and release agreement.
BuzzFeed expects to recognize restructuring charges in the range of $8-12 million related to the cuts.
