BuzzFeed is undergoing a shakeup in its executive leadership, as President Marcela Martin announced on Friday her intention to resign from her role effective January 12th. Her departure comes on the heels of BuzzFeed‘s recent closure of its once-promising news division this past April, and the exit last month of Chief Financial Officer Felicia DellaFortuna.
Martin’s resignation does not appear to stem from any disagreement with the company, BuzzFeed disclosed in a regulatory filing. Instead, her duties will be absorbed by BuzzFeed‘s CEO Jonah Peretti and other executives as the firm looks to consolidate its leadership structure.
The news of Martin’s exit caps a rocky year for the pioneering digital media firm. Founded in 2006 by Peretti and John Johnson, BuzzFeed built a massive Gen Z following thanks to its viral quizzes and lists. But while its youth-oriented content proved popular, profits remained elusive.
BuzzFeed took itself public last year via a merger with a special purpose acquisition company, aiming to shore up finances and fund its ambitious plans to take on legacy media. However, the company’s business model – heavily reliant on advertising – has struggled as marketers divert dollars to TikTok and other social platforms.
That uncertainty around future revenue was a key factor in management’s call to shutter its award-winning news team, after losing money most years of its decade-long run.
The news division did break major stories and won acclaim, including a Pulitzer last year for its coverage of China’s detention camps for Uyghur Muslims. But BuzzFeed ultimately failed to crack the code on how to turn original reporting into a successful business, a problem vexing much of digital media.
More turmoil may lie ahead as the company defends itself in a new lawsuit filed last week by shuttered media firm Ozy, alleging BuzzFeed stole confidential information. The suit also names Semafor – the new news startup founded by former BuzzFeed editor-in-chief and Ozy media columnist Ben Smith.
With Martin’s exit, BuzzFeed is choosing to consolidate power further under longtime leader Peretti as it seeks an elusive path to profitability. Whether that strategy pays off remains an open question, as the company aims to maintain relevance with young audiences while also trimming costs. For Peretti, BuzzFeed‘s founding visionary, the challenge ahead is his greatest yet.
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