The funny cat pic site BuzzFeed, the site responsible for the several “bombshell” stories that turned out to be fake news, is laying off 15 percent of its work force supposedly in an effort to finally become “profitable.”
BuzzFeed CEO Jonah Peretti said in an email sent to staff on Wednesday that the company would be implementing layoffs “next week” in areas across the company, according to The Hill.
“BuzzFeed currently employs just under 1,500 employees, meaning a little more than 200 employees will be leaving,” The Hill wrote.
“I’m writing with sad news: we are doing layoffs at BuzzFeed next week. We will be making a 15% overall reduction in headcount across the company,” the CEO wrote. “I’m sending this tonight because I wanted you to hear it from me directly instead of from the press.”
Peretti added that the changes are meant to “grow sustainably for years to come.”
“We’ve developed a good understanding of where we can consolidate our teams, focus in on the content that is working, and achieve the right cost structure to support our multi-revenue model,” Peretti added. “We are confident the changes we are making will put us on a firm foundation and allow us to invest and grow sustainably for years to come.”
The CEO also noted that the changes are meant to cut costs so the company could “improve our operating model so we can thrive and control our own destiny, without ever needing to raise funds again.”
That is the long way for saying that the company does not make any money and has to constantly raise funds from benefactors to stay in operation.
Peretti also insisted that revenue has grown over the last year, but it is still not enough to satisfy expenses.
But with fake news debacles like the false story that President Trump told his underlings to lie to investigators about a desired deal to build a hotel in Russia, that revenue might crater.
Apparently lying about the news isn’t as profitable as Peretti had hope.
Follow Warner Todd Huston on Twitter @warnerthuston.