BuzzFeed (NASDAQ:BZFD) outlined a broad restructuring plan during its second-quarter 2026 earnings call, including a workforce reduction of about 35%, as the digital media company seeks to lower costs, return its core business to profitability and pursue a platform-focused growth strategy.
Chairman and CEO Byron Allen said the company had been operating with an “unsustainable cost structure” and needed an immediate restructuring. The company announced the headcount reduction last week, which Allen said would create a more streamlined organization positioned to pursue sustainable profitability and positive cash flow.
Second-Quarter Revenue and Profitability Decline
Total revenue for the three months ended June 30 was $36.3 million, down 21.8% from $46.4 million in the comparable quarter a year earlier, CFO Matt Omer said.
- Advertising revenue declined by $5.3 million year over year.
- Content revenue fell by $700,000.
- Commerce and other revenue decreased by $4.1 million.
BuzzFeed reported a net loss of $11.8 million for the second quarter, compared with a net loss of $10.6 million in the second quarter of 2025. Adjusted EBITDA was a loss of $1.7 million, compared with adjusted EBITDA of $2 million a year earlier.
The company’s primary audience-engagement metric, time spent, totaled 62.3 million hours during the quarter, according to Comscore. That represented an 11% decline from 69.9 million hours in the prior-year period, though it increased by 1.7 million hours from the first quarter.
Cost Cuts Expected to Produce $30 Million in Annual Savings
Omer said the workforce reduction is expected to generate approximately $30 million in annualized savings. The company expects the reductions to result in costs of roughly $6.5 million to $8.5 million, paid during the remainder of 2026. Restructuring charges associated with the actions are expected to appear in third-quarter results.
Beyond headcount reductions, the company said it is cutting spending through other measures. During the second quarter, BuzzFeed terminated a U.K. office-space arrangement that began shortly before the pandemic. Omer said that action is expected to save about $5 million through 2029.
The company also said it has materially reduced outsourced professional fees, placed strict limits on non-essential travel and entertainment, implemented hiring freezes and closed open roles.
BuzzFeed paid down $20 million on its term loan, reducing the principal balance to $25 million. As of June 30, the company had net debt of approximately $5 million, Omer said. The debt reduction is expected to lower annual interest expense by more than $2 million.
“Given the transformation underway, we are focused on full-year operational targets rather than quarterly guidance,” Omer said, adding that the company expects to provide a more complete financial outlook as the restructuring and platform transition advance.
Shift Toward a Platform and Creator Model
Jonah Peretti, president of BuzzFeed AI, said the company is moving away from a traditional publishing model and toward what he described as a platform in which community members, creators and partners help fuel its content ecosystem.
In editorial, the company plans to use a smaller core team of writers supplemented by community creators, fellows and freelancers. Peretti said the approach is intended to make costs more variable, scaling with traffic rather than remaining elevated during periods of weaker audience trends.
BuzzFeed is also streamlining its technology teams around revenue-growth priorities and expanding use of artificial intelligence tools. Peretti said the company’s AI adoption has enabled it to triple the amount of code it produces monthly.
Allen highlighted the scale of the company’s consumer brands, including BuzzFeed, Tasty and HuffPost. He said BuzzFeed Shopping generates roughly $500 million annually in gross merchandise sales, while BuzzFeed, HuffPost and Tasty collectively have approximately 500 million social-media followers and nearly 75 million monthly active users.
Allen Media Group Sales Agreement
BuzzFeed also entered a sales representation agreement with Allen Media Group, or AMG, under which AMG’s sales organization will work as an extension of BuzzFeed’s sales team.
The agreement is designed to expand monetization of BuzzFeed’s advertising inventory and offer advertisers coordinated campaigns across premium television, streaming, local broadcast and digital media. BuzzFeed will retain authority over pricing, packaging and inventory for all transactions, Allen said.
AMG’s portfolio includes national linear television, local broadcast stations, 24-hour cable networks, The Weather Channel, theGrio, CBS Late Night and Local Now, according to Allen.
Looking ahead, Allen said BuzzFeed intends to pursue distribution partnerships and transactions while expanding into areas including comedy, weather, sports, music, podcasts, news, premium content and live events. He said the company’s goal is to build BuzzFeed into a “best-in-class free streaming service and a super app.”
About BuzzFeed (NASDAQ:BZFD)
BuzzFeed, Inc operates as a digital media and technology company specializing in news, entertainment, and social content. The company produces articles, videos and quizzes that target diverse audiences across web, mobile and social platforms. In addition to editorial content, BuzzFeed offers a suite of advertising solutions, including native advertising, branded content and programmatic display, designed to blend seamlessly with its editorial offerings and engage consumers at scale.
Founded in 2006 by Jonah Peretti and John S.
