BuzzMedia, a digital publisher behind more than 40 online millenial-focused brands, is in the process of laying off 50 employees, multiple sources with knowledge of the situation tell PandoDaily. The move, which comes just two months after the company promoted then President Stephen Hansen to the role of CEO in December, is said to be part of a rebranding and company streamlining effort.
According to those close to the company, BuzzMedia had approximately 250 employees prior to the current round of cuts. Given the scope of the company’s operations, and in comparison to other similarly positioned publishers, this appears to be an unusually large number.
There are limited details on the forthcoming rebranding, but one might speculate that the lesser known parent company would take the name of one of its more prominant publications, either SPIN or Celebuzz. Additional brands in the BuzzMedia portfolio include, Stereogum, Videogum, Buzznet, TheSuperficial, Idolator, Pure Volume, What Would Tyler Durden Do?, and many others.
The company claims to reach one in four US millenials each month and according to comScore is the largest digital publisher of entertainment news and the fourth largest digital publisher of original music content. Outgoing CEO and current Executive Chairman Tyler Goldman stated publicly that BuzzMedia had more than 30 million monthly unique visitors across its portfolio and was on track to generate $50 million in sales in 2012
BuzzMedia has announced only $43 million in funding to date from Redpoint Ventures, Anthem Venture Partners, and Interscope records, but industry sources put its total funding at significantly higher. At the time of his appointment, Hansen sent a memo to employees stating that the company would be receiving additional funding from its shareholders in a round said to be closing within weeks.
PandoDaily reached out to the company for comment, but did not receive a response prior to publishing. We will continue to update this story as additional information becomes available.