BuzzFeed cuts 16% of staff, sells division for US$108.6m

BuzzFeed Inc. sold its Complex Networks media unit to Commerce Media Holdings, the operator of an online shopping service, for $108.6 million and announced plans for a 16% cut in its remaining workforce.

The job cuts are expected to result in annual savings of $23 million, BuzzFeed said Wednesday in a statement. Proceeds from the sale of Complex will be used to reduce debt. Commerce Media does business as NTWRK.

Complex specializes in content for Millennial and Gen Z consumers. It began as a magazine started by fashion designer Marc Milecofsky that focused on young men and pop culture. 

BuzzFeed, an online media company, has struggled in recent years with cutbacks in internet advertising. Last year it eliminated its news division amid broader layoffs.

The company also said fourth-quarter revenue from continuing operations amounted to $73 million to $78 million, shy of a November forecast.

Adjusted earnings from continuing operations came to $15 million to $20 million before interest, taxes, depreciation and amortization, less then the $20 million to $30 million seen previously. –BLOOMBERG