Within a month of acquiring HuffPost from Verizon Media, BuzzFeed has announced layoffs of several employees of the company. BuzzFeed chief executive offer Jonah H Peretti said that the decision will affect 47 employees in the United States. Out of this, eight are from the management level. Peretti said that though the decision was tough, it was taken to fast-track the path to profitability for the news aggregator. He said that the move will help the company to break even by the end of this year and will eventually make it a profit-making company next year. The total loss of HuffPost in the year 2020 has been around USD 20 million.
Peretti said that the losses would be similar this year if not intervened and this is why the restructuring of the HuffPost is very important. “It is true that BuzzFeed is a profitable company, but there are no resources to support two years of losses of HuffPost.” Under the restructuring process, HuffPost Canada will be shut down. The media outlet was founded in 2005 as The Huffington Post. “We want to make sure that homepage remains a top destination for readers on the internet. Maintaining high traffic is also one of the main focuses.”
Meanwhile, the HuffPost union said that they never got a fair chance to prove their worth. The union said around 30 percent of its members will be affected by the layoffs. “We are totally devastated and enraged over the development. Particularly because we had a very tiring year of covering the coronavirus pandemic and working from home,” a statement released by the union reads. Many of the employees who were affected by the decision took to social media and lamented about the decision. They were extremely unhappy over the way they were told about the development, that too after working for several years for the company.