BuzzFeed News is shutting down

Popular U.S. news organization BuzzFeed is shutting down its news division as part of an effort to cut 15% of its work force, the company’s chief executive, Jonah Peretti, said Thursday in a memo to employees, according to U.S. media.

“While layoffs are occurring across nearly every division, we’ve determined that the company can no longer continue to fund BuzzFeed News as a standalone organization,” Peretti said. “As a result, we will engage with the News Guild about our cost reduction plans and what this will mean for the affected union members.”

– Key points to note

The move will affect about 60 jobs. The company will offer jobs at HuffPost and BuzzFeed.com to more than a dozen BuzzFeed News staff members affected by the closure in an attempt to salvage some positions, New York Times reported.

It quoted Peretti as saying in his memo that he “made the decision to overinvest” in BuzzFeed’s news division because he loved the work it produced. He however acknowledged that he was slow to accept that social-media platforms would not provide financial support required to make it profitable.

“I’ve learned from these mistakes, and the team moving forward has learned from them as well,” Mr. Peretti wrote. “We know that the changes and improvements we are making today are necessary steps to building a better future.”

Edgar Hernandez, BuzzFeed’s chief revenue officer, and Christian Baesler, the company’s chief operating officer, will depart but have agreed to stay on through the transition.

– Learn more

Buzzfeed was founded in 2006 by Jonah Peretti and John S. Johnson III to focus on viral content.

Originally known for online quizzes, “listicles”, and pop culture articles, the company covered a variety of topics including politics, DIY, animals, and business.

In December 2011, it opened the BuzzFeed News division after hiring Ben Smith of Politico as editor-in-chief, to expand the site into long-form journalism.

The paper has struggled for years to break even.