Los Angeles, California - BuzzFeed on Wednesday said it is reducing its workforce by 16% in a significant move to cut costs.

The online media company – which became a sensation in the mid-2010s for its popular listicles and funny viral videos – also announced the sale of youth-oriented publisher Complex for $108.6 million to the Los Angeles-based live shopping platform NTWRK.

In a memo to employees, BuzzFeed Chief Executive Jonah Peretti said that roles in the company's business and administrative teams would be affected by the reduction, while groups such as HuffPost, Tech, BuzzFeed Studios, Tasty, and First We Feast would not see cuts.

"The changes we announced today will enable an exciting next stage for our company, with increased focus on our iconic brands – BuzzFeed, HuffPost, First We Feast and Hot Ones, and Tasty; a more efficient cost structure and operational model; and the ability to accelerate innovation powered by AI and interactive content formats," Peretti said in a statement.

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BuzzFeed said that though it was selling Complex, it would keep First We Feast, which was part of its original $300-million acquisition of Complex announced in 2021.

"The sale of Complex represents an important strategic step for BuzzFeed, Inc. as we adapt our business to be more profitable, more nimble, and more innovative," Peretti said.

The cuts come amid longtime infrastructure shakeups at Buzzfeed and the shutdown of their Pulitzer Prize-winning News division in 2023.

But Buzzfeed is not alone, with broader turmoil brewing in the media and entertainment industries as companies look to slash costs and streamline their businesses.

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BuzzFeed's stock price closed at 22 cents on the Nasdaq, a fraction of its value when it started trading publicly in December 2021 at $10.95 a share.

The stock is in danger of being delisted by the Nasdaq because its share price was below $1 for at least 30 consecutive days. It has until May to regain compliance.

The shares reportedly doubled in value to 44 cents in after-hours trading following Peretti's announcement.