BuzzFeed Plans Job Cuts, Business Reorganization After Revenue Miss

   Buzzfeed's revenue this year declined causing for the company to cut short it's staff. They are planning to at least cut 8% of their employees along with international employees.“As our strategy evolves, we need to evolve our organization, too—particularly our business team, which was built to support direct-sold advertising but will need to bring in different, more diverse expertise,” Jonah Peretti, BuzzFeed’s co-founder and chief executive, said in a memo to staff. 

   Some employees are even including themselves in the cut of staff, by becoming advisors rather than having high-profile positions in the company. Earlier this month, The Wall Street Journal reported that BuzzFeed had put its plans for a 2018 initial public offering on hold and was on pace to miss its revenue target of about $350 million this year by some 15% to 20%. The company said it still expected to show revenue growth for the year, up from $250 million in 2016.In its early years, BuzzFeed found great success through its innovative use of “native” advertising—a high-cost, labor-intensive marketing format in which advertising is custom-made for brands to resemble editorial content.

   BuzzFeed is trying to also reinvent and budget its company. It is focusing on it's most successful segments like Tasty or TryGuys. BuzzFeed is trying to focus on more advertising models such as product placement and sponsored content. Company is trying to go bigger also by rebranding themselves from, BuzzFeed Motion Pictures to BuzzFeed Studio. The company will also try to expand toward different TV networks. BuzzFeed is definitely going from Facebook to bigger and better things. 

https://www.wsj.com/articles/buzzfeed-plans-job-cuts-business-reorganization-after-revenue-miss-1511972228