Business Insider cuts 21% of staff citing traffic sensitivity
Publisher eliminates coverage verticals and exits commerce while embracing AI automation.
Business Insider laid off 21 percent of its workforce on May 29, 2025, 18 months after the digital publisher's previous restructuring effort that eliminated eight percent of staff positions. The Axel Springer-owned company announced the cuts through an internal memo from Chief Executive Barbara Peng, which cited declining web traffic as the primary driver behind the workforce reduction.
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The layoffs affect every department within the organization, although the company declined to specify exact numbers of terminated employees. According to the memo, the restructuring represents "significant organizational changes that are part of the strategy we set in motion a year and a half ago."
Luis Rijo
Traffic dependency drives cost-cutting measures
Business Insider's decision stems from what Peng described as traffic sensitivity affecting 70 percent of the company's revenue model. According to the CEO's memo, "We're at the start of a major shift in how people find and consume information, which is driving ongoing volatility in traffic and distribution for all publishers."
The publisher has experienced improved monetization efficiency over recent years, with each site visit generating twice the revenue compared to two years ago. However, the company determined it needed to restructure operations to withstand potential traffic drops beyond management control.
Publishing industry data shows widespread challenges with digital traffic patterns. Multiple publications have shuttered during recent years as consumer information consumption habits continue shifting across platforms and distribution channels.
Luis Rijo
Coverage realignment targets strategic focus
The restructuring includes scaling back coverage categories that "once performed well on other platforms but no longer drive meaningful readership," according to Peng's announcement. The company plans to concentrate resources on areas where Business Insider can "deliver unique, lasting value and serve our audience in ways only Business Insider can."
"We're at the start of a major shift in how people find and consume information" Barbara Peng, CEO
Business Insider will expand reporting in coverage areas where subscribers consistently engage and return for specific content. The publisher hired Editor-in-Chief Jamie Heller in late 2024, implementing editorial changes that doubled original reporting output and increased reader engagement metrics over recent months.
The company is exiting most of its commerce business operations due to their reliance on search traffic, while maintaining select high-performing verticals. This decision reflects broader industry concerns about search-dependent revenue streams amid evolving digital discovery patterns.
Luis Rijo
Events business launch accompanies workforce reduction
Business Insider announced the launch of BI Live, a live journalism events business, as part of its diversification strategy. According to Peng, the events division represents "a space where we can showcase our journalism, connect directly with our audience, and build a strong portfolio of experiences."
The new division has already secured key leadership appointments and initial demand, with plans for continued team expansion. Events represent a growing revenue stream for media organizations seeking alternatives to traditional advertising-dependent models.
This shift follows industry trends where publishers increasingly pursue experiential revenue opportunities. Multiple media companies have established events divisions during recent years as complementary income sources.
AI integration accelerates operational changes
Business Insider's embrace of artificial intelligence tools factored significantly into workforce planning decisions. The company reports that over 70 percent of employees regularly use Enterprise ChatGPT, with management targeting 100 percent adoption across the organization.
Peng's memo stated the publisher has "launched multiple AI-driven products to better serve our audience — from gen-AI onsite search to our AI-powered paywall — with new products set to launch in the coming months." The company is exploring AI applications across shared services to improve operational efficiency and scaling capabilities.
The productivity gains from AI implementation influenced the decision to reduce staffing levels. According to the announcement, AI tools enable the organization to "work faster, smarter, and better" while maintaining output quality with fewer human resources.
Historical context of previous restructuring
This marks Business Insider's third round of layoffs within three years. The company eliminated approximately eight percent of staff in January 2024, following a 10 percent workforce reduction in April 2023.
The publisher originally operated as Business Insider before rebranding to Insider in 2021 as part of an expansion strategy under Axel Springer ownership. However, the company reversed this decision and returned to the Business Insider brand name when co-founder Henry Blodget stepped down as CEO in November 2024.
Axel Springer acquired a majority stake in the publisher for $343 million in 2015. The German media conglomerate's digital outlets and media businesses generate the majority of its revenue across global markets.
Union response criticizes management strategy
The Insider Union, affiliated with The NewsGuild of New York, issued a statement calling the layoffs "another example of Axel Springer's brazen pivot away from journalism toward greed." The union represents approximately 20 percent of affected employees in the current reduction.
Union representatives criticized management for including AI adoption messaging within the layoff announcement email, describing the timing as "tone-deaf." According to the union statement, "no AI tool or technology should – or can – take the place of human beings."
The union expects Business Insider management to follow contractual layoff procedures and provide appropriate support for affected members. This represents the third workforce reduction the union has faced during recent years.
Industry implications for digital media
Business Insider's restructuring reflects broader challenges facing digital media organizations adapting to changing consumption patterns and economic pressures. The company's 70 percent traffic dependency mirrors industry-wide concerns about platform algorithm changes and search distribution volatility.
Media industry observers note that traffic-sensitive business models face increasing vulnerability as major platforms modify content distribution policies. Publishers are pursuing diversification strategies including subscriptions, events, and premium content offerings to reduce advertising dependence.
The integration of AI tools across media operations represents both cost-saving opportunities and workforce displacement concerns. Multiple publishers have implemented similar automation strategies while reducing human editorial staff during 2024 and 2025.
Strategic positioning for future growth
Despite workforce reductions, Business Insider positions the changes as necessary for long-term sustainability. Peng's memo emphasized that "Business Insider was born in a time of disruption — when the smartphone was reshaping how people consumed news."
The publisher aims to leverage its position covering business, technology, and innovation journalism for professional audiences. Management believes the focused approach will enable competitive advantages in serving specific reader demographics.
Financial performance improvements include doubled original reporting output and substantially increased engagement metrics following editorial leadership changes. The company reports progress toward its strategic objectives despite operational challenges.
Why this matters
The Business Insider restructuring represents significant implications for marketing industry professionals who rely on the publication for business intelligence and industry coverage. The reduction in coverage areas may limit information sources for marketing decision-making, particularly in commerce and retail sectors where the publisher is scaling back operations.
The publisher's AI integration strategy signals broader industry trends affecting marketing communications and content creation workflows. As media organizations automate production processes, marketing professionals may encounter changes in how business journalism is produced and distributed.
The launch of BI Live events business creates new networking and professional development opportunities for marketing executives. Live journalism events offer direct access to business leaders and industry insights that traditional digital content cannot provide.
Business Insider's traffic sensitivity challenges highlight ongoing concerns about digital marketing attribution and measurement. The publisher's 70 percent dependence on traffic-based revenue mirrors similar challenges facing marketing organizations dependent on traditional web analytics and conversion tracking methods.
Staff memo from CEO Barbara Peng
Team,
Today we’re making significant organizational changes that are part of the strategy we set in motion a year and a half ago: to be the essential source of business, tech, and innovation journalism for an audience determined to succeed and unafraid to challenge convention to do it.
Since returning to our roots as Business Insider, we’ve been building toward something new. This kind of transformation takes time — and it requires tough decisions along the way.
What happens today
We are reducing the size of our organization, a move that will impact about 21% of our colleagues and touch every department.
This will be a difficult day, and our first priority is to provide clarity and support to those colleagues whose roles are being eliminated.
If your role is impacted, you will receive an email from the People & Culture team in the next 15 minutes. The email will include details for a meeting today in which a member of our P&C team will walk you through next steps and answer any questions. You will only receive an email if your role is affected.
We’re also proposing changes that impact our UK team, but the process is a bit different there; separate communication will follow from Claire Shelton.
While today’s changes are what we must do to build the most enduring Business Insider, it doesn’t make them any easier. We are fortunate to have built a company filled with thoughtful, kind, and creative people around the world, and we deeply appreciate the positive impact they have made within the company and on our readers, clients, and partners.
The changes we’re making today and why
Eighteen months ago we announced our new strategy: We went back to Business Insider and focused on delivering best-in-class business, tech, and innovation journalism to a smart, specific audience. That kicked off the beginning of our transformation from Insider — with its broad approach and appeal — to a more focused Business Insider.
Since Jamie Heller joined as EIC at the end of last year, we’ve made great progress — we’ve sharpened our standards and are shifting towards more reporting that is authoritative and matters deeply to the people who read it. We’ve doubled the amount of original reporting we publish and have substantially increased engagement in the past months.
This is a new Business Insider. It’s more focused. It’s intentional. And it’s working.
More broadly though, the media industry is at a crossroads. Business models are under pressure, distribution is unstable, and competition for attention is fiercer than ever. At the same time, there’s a huge opportunity for companies who harness AI first. Our strategy is strong, but we don’t have the luxury of time. The pace of change combined with the opportunity ahead demands bold, focused action — and it’s our chance to lead the pack.
Here’s what’s changing today:
1. We’re aligning our coverage to match our strategic focus.
We’re focusing where we can deliver unique, lasting value and serve our audience in ways only Business Insider can.
As Insider, we cast a wide net, covering a broad range of topics. Some of those still align with our strategy — stories that spotlight the smart moves (and mistakes!) people make as they actually experience the world.
At the same time, we’re scaling back on categories that once performed well on other platforms but no longer drive meaningful readership or aren’t areas where we can lead.
Our most loyal readers subscribe, engage, and consistently return for specific coverage — and we’re doubling down on those areas with expanded reporting and key hires.
2. We’re launching events and reducing our reliance on traffic-sensitive businesses.
We’re at the start of a major shift in how people find and consume information, which is driving ongoing volatility in traffic and distribution for all publishers. The impact on our industry has been profound, with many publications shuttering in recent years.
Our business is diversified, which has helped insulate us. We’ve also significantly improved how we monetize traffic — each visit to our site now generates twice as much revenue as it did just two years ago.
Still, 70% of our business has some degree of traffic sensitivity. We must be structured to endure extreme traffic drops outside of our control, so we’re reducing our overall company to a size where we can absorb that volatility.
We’re also exiting the majority of our Commerce business, given its reliance on search, and maintaining a few high performing verticals.
We’re launching and investing in BI Live, our new live journalism events business. It’s a space where we can showcase our journalism, connect directly with our audience, and build a strong portfolio of experiences. We’ve already seen demand, brought on key leaders, and will continue to build the team.
3. Finally, we are fully embracing AI.
As we shared during our April All-Hands, we are going all-in on AI — and we’re off to a strong start.
Over 70% of Business Insider employees are already using Enterprise ChatGPT regularly (our goal is 100%), and we’re building prompt libraries and sharing everyday use cases that help us work faster, smarter, and better.
In the past year, we’ve launched multiple AI-driven products to better serve our audience — from gen-AI onsite search to our AI-powered paywall — with new products set to launch in the coming months. We’re also exploring how AI can boost operations across shared services, helping us scale and operate more efficiently.
Change like this isn’t easy. But Business Insider was born in a time of disruption — when the smartphone was reshaping how people consumed news. We thrived by taking risks and building something new.
We’re at that moment again. It calls for bold experimentation, openness to change, and a willingness to lead.
Among all publications, we are uniquely positioned to do just that.
What’s next
I know this is a lot to absorb and it will take time to process. We’ll come together during the All-Hands today at 11:30AM ET and leaders will be hosting team meetings to answer your questions.
To those affected today, we are grateful to you for helping build Business Insider and for being wonderful colleagues. Your work has made an impact and we appreciate you.
Please support each other today and as we move through the coming days and weeks. While this change is extraordinarily difficult and will test us in many ways, it is a moment I know we’ll be able to meet. Thank you all for your resilience, as ever.
Barbara
Timeline
May 29, 2025: Business Insider announces 21% workforce reduction affecting all departments
November 2024: Jamie Heller joins as Editor-in-Chief, Henry Blodget steps down as CEO
January 2024: Business Insider cuts 8% of staff in previous restructuring effort
April 2023: Publisher eliminates 10% of workforce in earlier layoff round
2021: Company rebrands from Business Insider to Insider before later reversing decision
2015: Axel Springer acquires majority stake for $343 million