BuzzFeed investors are reportedly pressuring CEO Jonah Peretti to close its entire money-losing news operation, reports the New York Post. Mark Schoffs, editor in chief of BuzzFeed News, and two of his top deputies quit in the latest sign of turmoil at the cash-strapped company.
The network quoted a shareholder as saying that closing down the news operation could boost the company’s market capitalization by up to $300 million.
Peretti is reportedly aiming to turn the newsroom around and make it profitable.
It is unclear how a shutdown of the newsroom would affect HuffPost, which was acquired by BuzzFeed.
Last year, Peretti laid off 70 HuffPost staffers after buying the news site from Verizon Media.
The high-profile departures come on the same day that BuzzFeed released its fourth-quarter earnings report, which showed a 12% drop in earnings before interest, taxes, depreciation, and amortization.
The company also reported 18% higher revenue for the last quarter, but projected a drop in revenue in the first quarter of this year.
Peretti, who also founded BuzzFeed, told analysts that the goal is to return the company to profitability by the end of 2023.
He said the site planned to center its coverage around “the biggest news of the day, culture and entertainment and life on the internet.”