BZFD - BuzzFeed to lay off 12% of workforce

• BuzzFeed ( NASDAQ: BZFD ) said Tuesday it plans to cut costs by implementing ~12% reduction in its workforce .
• The job cuts are aimed at reducing costs in response to challenging macroeconomic conditions, completing integration of Complex Media and eliminating redundancies, and an ongoing audience shift to short-form, vertical video.
• "In order for BuzzFeed ( BZFD ) to weather an economic downturn that I believe will extend well into 2023, we must adapt, invest in our strategy to serve our audience best, and readjust our cost structure," CEO Jonah Peretti wrote in a communication to impacted employees.
• He added that reducing workforce was an essential part of cost cutting as "staff salaries are the single largest cost at the company".
• The firm expects to recognize restructuring charges in connection with the job cuts of $8M-$12M.
• The charges are expected to be recognized primarily in Q4 2022, with majority of such charges to be paid by the end of Q1 2023.
• BuzzFeed ( BZFD ) expects to substantially complete the workforce reduction by the end of Q1 2023.
• The stock is at high risk of performing badly and has a Sell rating from SA Quant .

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