BuzzFeed cuts 33% of workforce
What's the story
BuzzFeed, the media giant that was an early adopter of artificial intelligence (AI), has announced a massive layoff. The company will be letting go of 180 employees, which is about one-third of its total workforce. The decision comes as part of the company's ongoing struggle since its unexpected shift toward AI technology.
Affected divisions
Layoffs will impact employees across several BuzzFeed divisions
The layoffs will affect employees across several BuzzFeed divisions, including its news site HuffPost, film and TV studio, and recipe publisher Tasty.
An internal memo sent to staff said, "We've been actively managing costs for some time, working through scenarios to save as many jobs as possible."
It added that "the elimination of certain roles is still required," with today's changes impacting positions across the entire company.
AI controversy
BuzzFeed's AI journey and its consequences
BuzzFeed was an early adopter of AI, even using ChatGPT to create its popular quizzes.
However, the company soon found itself in a scandal for using AI to produce entire articles of questionable quality.
This led to the closure of its award-winning news division and a steep decline in website traffic and share price, which fell from around $4 to less than $0.50.
Financial woes
Financial challenges and loss of recognizable brands
By 2025, BuzzFeed was losing $58 million annually.
The company also lost some of its most recognizable brands, including First We Feast, the creator of the popular interview series Hot Ones, which was sold to pay off debt.
Despite these challenges, BuzzFeed's new owner and CEO Byron Allen has expressed his commitment to keep the company invested in AI technology.
Recovery strategy
Media industry's struggle with AI's impact
BuzzFeed hopes to save up to $32 million annually with these layoffs, according to a filing with the Securities and Exchange Commission.
The move comes as part of a wider trend across the media industry, which is feeling the pinch of AI's multi-faceted impact.
Not only are some employers eager to replace writers with quickly generated content, but AI is also pulling data from online publications while cutting off traffic and denying them ad revenue.