×

BuzzFeed Cuts Staff Salaries, CEO Jonah Peretti to Forgo Pay During Coronavirus Crisis

BuzzFeed, hoping to forestall layoffs with an economic downturn caused by the COVID-19 pandemic already under way, is reducing the salaries of most employees. CEO Jonah Peretti said he won’t be taking any compensation until the crisis has passed.

Peretti announced the salary cuts at a BuzzFeed all-hands meeting Wednesday and provided additional details in a memo, which was obtained by Variety. The digital-media company’s staffers will see their pay reduced on a sliding scale of 5% to 25%, depending on how much they earn and senior execs getting the biggest percentage cuts.

“I understand this will be a real hardship for everyone, but our goal is to make it possible for all of us to get through this,” Peretti wrote in the memo. The CEO told employees he will “not be taking a salary until we are on the other side of this crisis.”

BuzzFeed’s salary cuts were previously reported by the Daily Beast. The company last year was struggling amid headwinds in the digital-advertising biz, and laid off 15% of its workforce in early 2019.

Peretti, in the memo Wednesday, said BuzzFeed was already seeing the economic impact of the coronavirus crisis in its own business. “We don’t know how long this will last but we want to move quickly to make sure our business remains sustainable and we will lift the program and reevaluate if things improve,” he wrote.

The salary cuts will be reflected starting with the April 15 pay period. For U.S. employees, the rate cuts are as follows based on annual salary tiers: $40,000-$64,999, 5%; $65,000-$89,999, 7%; $90,000-$124,999, 9%; $125,000-$169,9999, 11%; $170,000-$224,999, 12%; $225,000 and above, 13%.

The company’s most senior execs will see pay cuts of 14%-25%, per Peretti’s memo. Contractors and freelancers will see their rates docked 8%.

Peretti said BuzzFeed execs will meet with reps from the NewsGuild of New York, the union that represents BuzzFeed News workers, to “share this plan and invite them to participate in this or to propose a new plan that meets the same savings goal.”

In a statement, the BuzzFeed News Union said in part, “While this obviously isn’t ideal for anyone, we’re glad the company is taking a proactive approach and pursuing options to cut costs that don’t result in job losses.” The union said that in meeting with BuzzFeed execs about the proposed pay reductions, “we’re committed to working towards what’s best for our members and for BuzzFeed, including all of our colleagues across the company.”

Popular on Variety

More Digital

  • Alex Jones

    Google Removes Infowars Android App From Online Store Over Coronavirus Misinformation

    Google on Friday removed the Android version of the Infowars app from the Google Play online store, after comments made by Infowars founder Alex Jones about the COVID-19 pandemic were deemed false and harmful. Google Play was that last major internet platform that provided an outlet for Infowars, which trades in right-wing conspiracy theories and [...]

  • Van Weezer

    Weezer Debuts Online Video Game as Throwback to Simpler Times -- And Album Promo

    Eight-bit diehards, get your thumbs ready: pop rock darlings Weezer have launched a nostalgia-heavy online side-scrolling action game, playable via web browsers.  The “The End of the Game” game has users playing as one of the band’s four members and jumping and shooting their way in a (surprisingly difficult) boss fight against an oversized, beanie-clad [...]

  • Google-Mountain-View-Calif

    Google Commits $800 Million, Mostly in Ad Credits, to Coronavirus Relief Efforts

    Google and parent Alphabet are pitching in to help small businesses, health organizations and governments dealing with the COVID-19 pandemic. The internet company has earmarked more than $800 million for coronavirus relief, about three-fourths of which ($610 million) is in the form of Google Ad credits to small and midsize businesses and governmental orgs, Alphabet [...]

  • Why Are Music Streams Down If

    Why Are Music Streams Down If Everyone's Stuck at Home? Experts Weigh in

    While it might seem counterintuitive that music streams would decline at a time when so many Americans were ordered to stay home, data-savvy label executives were neither startled nor concerned by the 7.6% drop in plays that happened in the March 13-19 tracking week. Simply put, they say it’s down to focus on news and [...]

  • MipTV Online Plus Initiative Launches

    MipTV Online Plus Features Showcases, Pitches, Presentations

    Reed Midem launches its MipTV Online Plus initiative Monday as a digital alternative to the conference that was scheduled to open on the same day in Cannes, but it includes many of the elements that were planned for the physical event. Among the streamed sessions on Monday morning (Paris time) will be the invitation-only Drama [...]

More From Our Brands

Access exclusive content