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BuzzFeed to reduce expenses by implementing 12% reduction in workforce
The Fly

BuzzFeed to reduce expenses by implementing 12% reduction in workforce

In a regulatory filing, BuzzFeed reported that on December 6 the company announced plans to reduce expenses by implementing an approximately 12% reduction in the current workforce. "The reduction in workforce plan is intended to reduce the company’s costs in response to a combination of factors, including (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. The company expects to substantially complete the workforce reduction plan by the end of the first quarter of 2023. Where required, worker adjustment and retraining notification, or ‘WARN,’ shall be given. In addition, all eligible employees shall be offered severance benefits in exchange for the execution of a separation and release agreement… The company expects to recognize restructuring charges in connection with the workforce reduction plan including, but not limited to, the cost of providing, where required, WARN notice; and severance, including outplacement services and benefits continuation. We estimate that the foregoing charges will range between $8 million to $12 million, and we expect that the charges will be recognized primarily in the fourth quarter of 2022, with the majority of such charges anticipated to be paid by the end of the first quarter of 2023. The substantial majority of these charges will result in cash expenditures," the filing stated.

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