BuzzFeedThe company is closing its news organisation, which is losing money, it announced Tuesday amid investor concerns that this division could be causing financial problems for the company.

According to several large shareholders, BuzzFeed CEO Jonah Peretti was urged to close down all news operations, according to the individuals, who declined to identify themselves because it was private. BuzzFeed did not respond to requests for comment.

Two people claimed that BuzzFeed News is part of its content section and has around 100 employees. It loses approximately $10 million each year. It also includes advertising and commerce departments. said TuesdayIts full-year content revenues grew by 9% to $130 Million in 2021.

CNBC was told by one shareholder that closing down the newsroom would add $300 million to its market capitalization. In December, the digital media company was made public through a special purpose acquisition vehicle. In the week that followed, shares fell by nearly 40% and have not since recovered.

Midday trading on Tuesday saw the stock surge by around 1% after the company’s first quarter earnings report.

Peretti is a tireless advocate for BuzzFeed News’ importance over the years. calling it “good for the world, good for business, and good for our company culture.”The Newsroom at the Organization has been awarded several prizes, among them a Pulitzer Prize the George Polk Award.

Peretti stated Tuesday that BuzzFeed News announced its plans to increase profitability. This included leadership changes and the addition of a business development team. Peretti also said that a reduction in force was planned. We will invest in the coverage of celebrity and culture, entertainment and the most important news of the day.

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According to someone familiar with the situation, the company offered buyouts at no cost to employees less than 30, but the person requested anonymity because it is confidential. This buyout is available only to journalists or editors working for BuzzFeed for over a year and who report on investigations, inequality and science. BuzzFeed intends to offer the buyout. buyout proposal to the NewsGuild of New York regarding its U.S. staffers.

Peretti has decided to try and turn BuzzFeed News around. A template is already in place: Peretti made the decision to lay off 70 HuffPost staffers last year after acquiring the company from Verizon Media.

Peretti explained that BuzzFeed has a very profitable business, but they do not have the financial resources to continue suffering losses for two more years. “The most responsible thing we can do is to manage our costs and ensure BuzzFeed — and HuffPost — are set up to prosper long-term. HuffPost has been restructured to increase profitability. HuffPost should be able to make a profit this year.

A person who knows HuffPost said that HuffPost has now become profitable.

Tom Namako as Deputy Editor-in Chief and Ariel Kaminer executive editor for investigations are also resigning.Namako joining NBC News’ digital operation as executive editor.

Buzzfeed reported in its fourth quarter earnings that quarterly revenue rose 18% to $146million. The company’s profit rose 29% to $41.6million, an increase of 29% over the previous year.

Full-year revenue grew 24% year over year to $398 million. Net income more than doubled from last year to $25.9 million.

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Disclosure: NBC/CNBC are two divisions within NBCUniversal.