CEO states that they are not able to turn a profit.
BuzzFeed is shutting down BuzzFeed News because it is not able to turn a profit, according to a memo CEO Jonah Peretti sent to company staff last Thursday.
BuzzFeed will now concentrate its news efforts on HuffPost, which they acquired from Verizon in 2020, per Peretti’s memo. BuzzFeed.com site will remain in place and they will be laying off 15% of its employees.
Peretti's memo to staff suggests that the company's dependence on social media platforms may have played a role in BuzzFeed News' lack of profitability. Social media platforms like Facebook and Twitter are often the primary way people consume news, but they do not always generate significant revenue for news organizations. HuffPost, on the other hand, has been able to build a highly engaged and loyal audience that is less dependent on social platforms, which has allowed it to achieve profitability.
What do you think? Do you prefer your news from social platforms or direct from websites?
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