The layoffs have been met with strong criticism from the Insider Union, which accused Axel Springer of prioritizing profit over journalism. The union condemned the use of AI as a justification for job cuts, labeling the move as a continuation of strategic failures by BI's leadership. This marks the third major layoff at BI in three years, with the U.K. division also affected. The union emphasized that AI tools should not replace human workers, criticizing the timing and tone of the announcement.
Key takeaways:
- Business Insider is cutting 21 percent of its workforce as part of a restructuring strategy focused on AI adoption and a narrower editorial focus.
- CEO Barbara Peng announced the layoffs and emphasized the company's shift towards AI-powered tools and automation to improve efficiency.
- The Insider Union criticized the layoffs, accusing the company of prioritizing greed over journalism and condemning the use of AI as a justification for job cuts.
- The layoffs affect all departments and are effective immediately, with the U.K. division also undergoing a separate downsizing process.