BuzzFeed vowed to chase YouTube with AI. Then it cut a third of its staff

In an attempt to compete with YouTube as a free video streaming platform, BuzzFeed's former CEO made the controversial decision to embrace artificial intelligence in 2023. Now, the company is hemorrhaging money as its stock price continues to free-fall.

Here's what to know

BuzzFeed shares had reached $2.09 earlier this year. But after the company's third-quarter earnings report, they dropped 38% in one morning to $0.57, according to Futurism.

The company missed analysts' expectations by 13 cents, reporting a loss of $0.22 per share. This followed its disclosure of a $57.3 million net loss in 2025. BuzzFeed expressed "substantial doubt" about its "ability to continue" doing business in March, repercussions of former CEO Jonah Peretti's commitment to AI content.

In May, a company affiliated with television personality Byron Allen's family bought a majority stake in BuzzFeed, offering optimism. Peretti announced his new title of "president of BuzzFeed AI" following the deal that laid the groundwork for a new streaming strategy.

"With the power of AI, BuzzFeed is officially chasing YouTube to become another premiere free video streaming service," Allen said.

Roughly two months after Allen acquired a majority stake in the company, BuzzFeed laid off 180 people, a third of its staff, The New York Times reported. This was yet another sign of the company's decline since doubling down on AI.

More background

BuzzFeed's AI-generated quizzes and travel guides drew criticism during its early experiments with the technology. The company adopted AI in 2023 after OpenAI introduced ChatGPT.

Beyond job losses and countless examples of the technology being used to profit off artists and creatives, artificial intelligence is contentious because of its resource consumption. 

AI relies on data centers connected to the energy grid, and its computing demands can require substantial electricity and water for cooling. As AI use expands, it raises questions about resource consumption, security, misuse, and unintended costs for surrounding communities.

During a May interview with The Verge, Peretti described a shift in digital media "where AI is going to start creating a new medium for content that wasn't really possible before." 

Where can I learn more?

BuzzFeed is one of several companies pursuing AI while cutting jobs.

• Netflix workers criticized layoffs alongside Ben Affleck's nearly $600 million AI deal.

• Comcast says AI cut service contact rates 20% as sweeping layoffs loom.

• Kroger plans 3,000 corporate job cuts as its new CEO pushes AI to reduce duplicative work.

• Barclays ties 5,000 job cuts to AI, with developers among the roles at risk.

• At Australia's Parliament, an economist said AI's business model is "mass unemployment."

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