BuzzFeed is shrinking its money-losing news organization, the company announced Tuesday, amid what people familiar with the matter describe as broader investor concern that the division is weighing down the company.

Several large shareholders have urged BuzzFeed founder and CEO Jonah Peretti to shut down the entire news operation, said the people, who asked not to be named because the discussions were private. BuzzFeed declined to comment.

BuzzFeed’s stock closed over 6% higher at $5.27 on Tuesday.

BuzzFeed News, which is part of its content division, has about 100 employees and loses roughly $10 million a year, two of the people said. The company, which also has advertising and commerce divisions, said Tuesday its full-year content revenue grew 9% in 2021 to $130 million.

One shareholder told CNBC shutting down the newsroom could add up to $300 million of market capitalization to the struggling stock. The digital media company went public via a special purpose acquisition vehicle in December. The shares immediately fell nearly 40% in their first week of trading and haven’t recovered.

Peretti has been a vocal champion of the importance of BuzzFeed News for years, calling it “good for the world, good for business, and good for our company culture.” The organization’s newsroom has won several awards, including a Pulitzer Prize and a George Polk Award.

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