One of the hardest-hit companies this year, BuzzFeed (NASDAQ:BZFD) continues to hover around its all-time lows. With significant pressure on the company, it’s perhaps unsurprising to know Buzzfeed layoffs are now taking place.

Reports have been circulating that BuzzFeed has laid off 12% of its workforce. This move, similar to layoffs seen in other companies in the sector, appears to be tied to the need to gain profitability during these difficult times.

Advertising spending is down, leading to what the company believes could be a protracted economic downturn. With this in mind, the company appears to be shoring up its balance sheet to weather the storm.

Shares of BZFD stock traded down as much as 5% today and are right around their all-time low at the time of writing. Let’s dive into whether this company could be an attractive growth-as-a-reasonable-price pickup or a potential value trap.

Is Now the Time to Buy Amid BuzzFeed Layoffs?

Now trading just a hair above $1 per share, this de-SPAC company is the latest high-growth stock to get its comeuppance this year. Like other fast-growing companies which benefited from a surge in ad spending and more eyeballs glued to screens during the pandemic, BuzzFeed has since seen its losses grow, with revenue growth of 15% — pretty good, but clearly not what most investors were hoping for.

The complex special purpose acquisition company merger that brought BuzzFeed public also included the acquisition of Complex Networks for $300 million. Other acquisition deals prior to the company’s initial public offering were also taken on. Thus, the company is already saddled with debt and will need to grow its way out of its hole.

Right now, investors don’t appear to be interested in such stories. Like other burdened high-growth tech stocks that are seeking elusive profitability, BuzzFeed is not as glamorous an offering as it once was. Of course, that could portend well for investors who see real value in the company’s underlying business.

While this is certainly a higher-risk, higher-upside pick in this environment, it may be too risky to jump in just yet. We really don’t know how bad the economy will turn out to be next year. If BuzzFeed is right, we could be in for another lackluster year. Thus, it’s a difficult call, but I’m going to stick on the sidelines with this stock right now.

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On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.