BuzzFeed, hoping to forestall layoffs with an financial downturn of the COVID-19 pandemic already underneath approach, is decreasing the salaries of most workers. CEO Jonah Peretti mentioned he gained’t be taking any compensation till the disaster has handed.
Peretti introduced the wage cuts at a BuzzFeed all-hands assembly Wednesday and supplied further particulars in a memo, which was obtained by Selection. The digital-media firm’s staffers will see their pay lowered on a sliding scale of between 5% and 25%, relying on how a lot they earn.
“I perceive this will probably be an actual hardship for everybody, however our purpose is to make it attainable for all of us to get by this,” Peretti wrote within the memo. The CEO informed workers he’ll “not be taking a wage till we’re on the opposite facet of this disaster.”
BuzzFeed’s wage cuts have been beforehand reported by the Daily Beast.
The corporate final yr was struggling amid headwinds within the digital-advertising biz, and laid off 15% of its workforce in early 2019.
Peretti, within the memo Wednesday, mentioned BuzzFeed was already seeing the financial impression of the coronavirus disaster in its personal enterprise. “We don’t understand how lengthy this can final however we need to transfer rapidly to ensure our enterprise stays sustainable and we’ll raise this system and reevaluate if issues enhance,” he wrote.
The wage cuts will probably be mirrored beginning with the April 15 pay interval. For U.S. workers, the speed cuts are as follows based mostly on annual wage 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 corporate’s most senior execs will see pay cuts of 14%-25%, per Peretti’s memo. Contractors and freelancers will see their charges shaved 8%.
Peretti added that BuzzFeed execs will meet with reps from the NewsGuild of New York, the union that represents BuzzFeed Information staff, to “share this plan and invite them to take part on this or to suggest a brand new plan that meets the identical financial savings purpose.”