Tuesday , March 31 2020

Drop in income forces fresh layoff wave in BuzzFeed

America’s free online news heavyweights, BuzzFeed and HuffPost, this week were rocked by a new wave of  suspension, a gretaer sign in advertising-dependent economic model.

At BuzzFeed, this was the second wave in the last fourteen months where people are cut off from job. Cmpany announced that 200 jobs to be cut down out if the total staff of 1700.

In the first phase, 100 people were terminated of their jobs and the remaining will be forced to leave during the second wave.

At HuffPost, around 10 per cent of journalists left editorial staff this week and about 20% of the people left in total.

Company failed to give explanation to the public in this regard, but the reasons are obvious.

The HuffPost’s parent company is Verizon Media, and reportedly it owns huge digital platforms such as AOL, Yahoo! and Verizon Media Services –and most of them are suffering job cuts and downsizing.

“They were started pretty much with the idea of trying to assemble a great big audience and then sell advertising against those numbers,” media business analyst, Rick Edmonds informed.

But “Google and Facebook have grown into much, much more of an audience. And they’re also better at gathering information and targeting people.”

E-Marketer forecast that the search engine giant and the social network behemoth is ready to take 57.7 % of advertising revenue in 2018 after it rose sharply in 2011 by capturing 45.7% of the revenue.

Amazon is also an emerging tech-titan and just climbed a step up.

Analysts believed that also BuzzFeed nor HuffPost are not on the verge of disappearing but their value is greatly tarnished in eyes of many tech investors.

“You’ll never hear me say that a merger makes sense,” Kennedy said.

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