BuzzFeed announced plans today to lay off employees as it refocuses its content development efforts, Variety reports. The move was announced by CEO Jonah Peretti.
“The move comes as BuzzFeeed [is] anticipating falling far short of its revenue goals for 2017, a gap that will likely derail efforts to mount an initial public offering next year,” Variety reports. “The company is about 15-20% short of its $350 million target, according to The Wall Street Journal.”
The company will be cutting about 100 jobs, or about 7% of the work force.
“The 100 employees will largely be drawn from advertising sales and business operations, where Peretti signaled a different skill set is needed as BuzzFeed attempts to diversify beyond native advertising to other areas including e-commerce and programmatic ad sales,” Variety notes.
In his announcement, Peretti wrote: “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 to support these new lines of business. Unfortunately, this means we have to say goodbye to some talented colleagues whose work has helped us tremendously.”