BuzzFeed jumps on plan to cut a third of workforce

Drew Angerer/Getty Images News

BuzzFeed (BZFD [https://seekingalpha.com/symbol/BZFD]) shares rose nearly 11% on Tuesday after the digital media company approved a workforce reduction plan that will cut about 35% of its current employees and dedicated contractors across multiple geographies and functions as part of a broader effort to lower costs.

The company said the restructuring is aimed at accelerating its path to profitability and positive cash flow by streamlining its organizational structure, reducing operating expenses, and preserving cash. BuzzFeed expects to record $6.5M to $8.5M in restructuring charges, primarily in the third quarter of 2026, related to severance, outplacement services, and continued benefits.

Most of the charges [https://seekingalpha.com/filing/309864519]will result in cash outlays, which are expected to be paid by the end of the fourth quarter. The company expects the layoffs to generate annualized savings of approximately $29.0M to $32.0M, beginning primarily in the third quarter of 2026 and beyond.

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