Business Insider, a financial news outlet based in New York, is undergoing a significant restructuring. An internal memo from Thursday revealed a 21% reduction in its workforce. This decision comes as the company, like many other digital media entities, faces declining web traffic and the growing influence of generative AI tools such as ChatGPT, which are changing how consumers access news summaries.
The broader media landscape is experiencing a shift where AI-generated content is affecting traditional web traffic, prompting companies to reevaluate their operational strategies.
In the internal memo, CEO Barbara Peng informed staff of a major strategic shift at Business Insider, driven by the evolving digital landscape. While the company has managed to double its revenue per website visit compared to two years ago, Peng noted that 70% of its business remains vulnerable to fluctuations in web traffic.
“We must be structured to endure extreme traffic drops outside of our control, so we’re reducing our overall company size to a level where we can absorb that volatility,” Peng stated in the memo, which was shared with Reuters.
This indicates a proactive measure to right-size the organization in response to unpredictable market conditions. Peng also emphasized the company’s rapid integration of AI, revealing that the majority of employees are now using Enterprise ChatGPT.
Additionally, Business Insider is actively using several AI-driven products to streamline internal operations and enhance the reader experience. This move underscores the company’s commitment to adapting to new technological advancements to maintain its competitive edge. Business Insider is making a significant strategic pivot by realigning its content strategy to focus on highly engaging areas and scaling back its commerce business.
The company is also venturing into a new events business, BI Live, which has already shown demand and will see continued team expansion. This restructuring aligns with broader trends in the media industry, as evidenced by The Washington Post and the Associated Press, which earlier this year laid off 4% and 8% of their workforces, respectively, to cut costs and modernize.