Business Insider has announced a significant restructuring effort, which includes laying off around 21% of its staff. The company's CEO, Barbara Peng, revealed the decision in an internal memo, stating that the layoffs will affect every department and are part of a broader strategy to focus on high-quality journalism and leverage artificial intelligence (AI) to improve operations.
The media industry is facing significant challenges, including declining web traffic and increased competition for attention. Business Insider's business model is heavily reliant on traffic, with a substantial portion of its revenue tied to web traffic. In response, the company plans to reduce its traffic sensitivity and exit most of its commerce business operations due to their reliance on search traffic.
To achieve this, Business Insider will implement AI tools to improve operational efficiency and scaling capabilities. The company has already seen significant adoption of AI technology, with over 70% of employees using Enterprise ChatGPT regularly. By embracing AI, Business Insider aims to enhance its journalism and improve its bottom line.
As part of its restructuring effort, Business Insider will also launch a new events business, BI Live, which will focus on live journalism events. This move is designed to diversify the company's revenue streams and showcase its journalism to a wider audience.
The layoffs have been met with criticism from the Insider Union, which represents around 20% of the affected employees. The union has expressed concerns about the role of AI in replacing human journalists and has accused the company of prioritizing profits over journalism. Despite these concerns, Business Insider is moving forward with its restructuring effort, aiming to emerge as a more efficient and effective media company.
