Business Insider announced a significant workforce reduction on Thursday, with approximately 21% of employees being let go as part of the company’s strategic shift toward artificial intelligence integration. The announcement came via an internal memo from CEO Barbara Peng, which was shared by Axios reporter Sara Fischer.
The restructuring comes amid ongoing challenges in the traditional media landscape, where trust in established outlets continues to decline while alternative media sources, social platforms, and podcast creators gain increasing market share. The industry has been experiencing a sustained period of consolidation and contraction, with no clear indication of when this trend might reverse.
In her communication to staff, Peng emphasized the company’s commitment to AI adoption, noting that over 70% of Business Insider employees are currently utilizing Enterprise ChatGPT, with aims to achieve complete workforce adoption. The organization is developing prompt libraries and implementing AI use cases to enhance operational efficiency.
The restructuring plan encompasses several key initiatives. The editorial direction is being refined to concentrate on business, technology, and innovation coverage that generates sustained reader engagement. Content areas showing poor performance are being eliminated. The company is also addressing its heavy reliance on web traffic, with 70% of its business currently dependent on digital traffic patterns. As part of this adjustment, Business Insider is substantially reducing its Commerce division.
The transformation includes the introduction of AI-powered features, such as a new search engine and AI paywall system, while streamlining operations through automation. The staff reductions are taking immediate effect, with affected employees receiving direct
communication from human resources. The changes extend to the UK operation, though through a separate process. As part of its strategic pivot, Business Insider is launching new ventures, including BI Live, focused on live journalism events.
Business Insider operates under the ownership of German media conglomerate Axel Springer SE, which acquired a majority stake in 2015 for $343 million before taking complete ownership in 2018. Axel Springer’s media portfolio includes other prominent outlets such as Politico, Bild, and Die Welt.
The timing of this restructuring has raised questions, particularly in light of recent developments involving Politico’s USAID funding cancellation by the DOGE team. The move also comes amid previous criticism from notable figures such as Elon Musk, who has questioned Business Insider’s credibility as a publication.
This latest round of media industry layoffs reflects the ongoing transformation of traditional journalism in response to technological advancement and changing consumer preferences. The shift toward AI integration represents a significant pivot in how news organizations are approaching content creation and distribution in an increasingly digital landscape.
The restructuring demonstrates the growing influence of artificial intelligence in newsroom operations, as traditional media outlets seek to remain competitive in a rapidly evolving digital environment. This transition marks a significant moment in the ongoing evolution of digital journalism, as established media organizations adapt to new technological capabilities while managing the challenges of
maintaining sustainable business models in an increasingly fragmented media landscape.