BuzzFeed has proposed cutting nearly a third of its UK staff as part of a sweeping reorganisation at the digital publisher.
UK staff were told on Thursday that 45 jobs would be eliminated from a total of 140, with cuts to both editorial and commercial. Last week, the news and entertainment website said it was eliminating 100 jobs in the US and overhauling its business structure to reflect a shift away from relying solely on native advertising.
Many online publishers are struggling to capture digital advertising growth in a market dominated by Google and Facebook. The tech giants are set to attract 84 per cent of global spending on digital advertising, excluding China, in 2017, according to GroupM, the WPP-owned media buying agency.
BuzzFeed, which built its business on creating content for advertisers, is turning to other revenue sources such as e-commerce, video and licensing to keep its business growing and meet investors’ expectations. The company is backed by Comcast’s NBCUniversal, which has invested $400m at a $1.7bn valuation.
In November, the Wall Street Journal reported that BuzzFeed is set to miss its revenue target of $350m this year by 15 to 20 per cent. It would not be the first time BuzzFeed has fallen short: last year the Financial Times reported that the company had missed its 2015 revenue target and slashed its internal projections for 2016 by half.
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