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Business Insider layoffs as traffic drops — but publisher Axel Springer says AI will fix it!

Jun 01, 2025 - pivot-to-ai.com
Business Insider is laying off 21% of its staff due to a significant decline in search engine traffic, as noted in a memo from CEO Barbara Peng. The company is attempting to shift its focus away from search-driven content, which previously accounted for 70% of its traffic, towards alternatives like live events. This change comes as Google reduces traffic to original sites by providing direct answers through its AI Overview feature. Despite the layoffs, Business Insider plans to maintain content production by increasing the use of Enterprise ChatGPT, with over 70% of employees already utilizing it regularly.

Axel Springer, the parent company, stated that its other US publications, Politico and Morning Brew, would not be impacted by these changes. However, Politico has faced issues with the PEN Guild, the journalists' union, for using AI to summarize live events without prior agreement. This is notable as Business Insider also aims to pivot towards live events. The shift towards AI-driven content at Business Insider raises concerns about the quality and review process of the content being produced.

Key takeaways:

  • Business Insider is laying off 21% of its staff due to a significant drop in search engine traffic.
  • The company is shifting focus to non-search-driven content like live events, as Google search traffic declines.
  • Over 70% of Business Insider employees are using Enterprise ChatGPT to enhance productivity, with a goal of reaching 100% usage.
  • Axel Springer's other US publications, Politico and Morning Brew, are not affected by the layoffs, but Politico has faced issues with the journalists' union over AI usage.
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