Major Cuts Impact All Departments
Business Insider announced on Thursday that it is cutting approximately 21% of its workforce across all departments as part of a significant organizational restructuring[1][2]. This marks the third round of layoffs at the publication in as many years[1].
CEO Barbara Peng informed staff of the decision in a memo where she outlined the company's path forward, emphasizing that while their strategic direction remains sound, "the pace of change combined with the opportunity ahead demands bold, focused action."[2]
AI Integration at the Center of New Strategy
In the same announcement detailing the layoffs, management revealed plans to fully embrace
artificial intelligence technologies within their operations[1][2]. This AI-focused approach comes just two weeks after the company hired a Newsroom AI Lead, signaling their commitment to this direction[2].
The NewsGuild of New York, which represents Business Insider journalists, criticized the timing and tone of this announcement, calling it "tone-deaf" to include AI promotion in an email about layoffs[1]. The union firmly stated its position that "no AI tool or technology should — or can — take the place of human beings."[1]
Strategic Realignment
Peng's memo indicated that Business Insider will be launching new events coverage and reducing reliance on "traffic-sensitive businesses" as part of its strategic shift[2]. The CEO described the current media landscape as being "at a crossroads," with traditional business models under pressure, unstable distribution channels, and fierce competition for audience attention[2].
"Eighteen months ago we announced our new strategy: We went back to Business Insider and focused on delivering best-in-class business, tech and innovation journalism to a smart, specific audience," Peng wrote, noting progress in sharpening standards and increasing original reporting[2].
Union Response
The NewsGuild of New York issued a strong response to the layoff announcement, attributing the cuts to "strategic failures of Business Insider's leadership" rather than industry necessities[1]. They specifically criticized Axel Springer, Business Insider's parent company, describing the move as "another example of Axel Springer's brazen pivot away from journalism toward greed."[1]
The union has pledged to fight for voluntary buyouts and better terms for affected staff, stating they expect management to follow contractual layoff procedures and treat employees with appropriate respect[1].
This latest round of cuts follows a previous reduction of approximately 8% of the company's workforce in January 2024[2].
