Buzzfeed, Verizon lay off several employees, more to come

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Donald Trump is blaming economic woes in the media industry on "fake news and bad journalism".

Many digital media companies have cut jobs or sold off in recent years as Facebook and Google gobble up the bulk of digital advertising dollars.

On Wednesday Buzzfeed announced that it was losing about 250 staff - 15 per cent of its workforce - after failing to keep up with the "evolving economics"...

BuzzFeed began laying off employees on Friday a day after CEO Jonah Peretti sent an email to staff telling them cuts were on the way.

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BuzzFeed as a business, according to Peretti, grew into double digits, but, as he wrote, "revenue growth by itself isn't enough to be successful in the long run". Verizon announced it would cut 7% or approximately 800 jobs from its media division, which includes brands like HuffPost, AOL and Yahoo News, and Gannett slashed dozens of jobs at newspapers across the country. "These changes will allow us to be the clear victor in the market as the economics of digital media continue to improve", Peretti continued. The left-wing website's reputation suffered a sizeable blow this month after special counsel Robert Mueller disputed its report alleging President Trump directed his former attorney Michael Cohen to make false statements to Congress regarding a proposed real estate deal in Russian Federation.

BuzzFeed News has published impactful political reporting over the past year but has been a drag on the company's finances. The sources also revealed that BuzzFeed raised over US$500 million in its latest funding.

But Verizon found benefits from integrating those two companies were less than expected.

The cutbacks are part of a wave of media layoffs. The pieces on the "BuzzFeed News" website previously were more on the global political and cultural issues. The cuts are also happening as the company attempts to avoid another round of fund-raising.

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