Business Insider Cuts 21% of Workforce Amid Traffic Declines, AI Shift

Business Insider, a prominent financial news media outlet, has announced plans to reduce its workforce by approximately 21%. This decision comes as the company faces challenges such as declining search traffic and the increasing use of generative AI tools like ChatGPT. The company's CEO, Barbara Peng, highlighted in an internal memo that while the revenue per website visit has doubled compared to two years ago, 70% of the business remains sensitive to traffic fluctuations.

Peng emphasized the need to adjust the company's structure to withstand extreme drops in traffic, which are beyond their control. The company is accelerating its adoption of AI, with most employees already using Enterprise ChatGPT and other AI-driven products to enhance operations and reader experience. Business Insider is also shifting its content strategy to focus on areas that attract high reader engagement and plans to exit most of its commercial businesses.

In addition to these changes, the company is launching a new event business called BI Live, which has already shown some demand and will continue to build its team. This restructuring is part of a broader trend among digital media companies that are reconfiguring their businesses in response to changing market conditions and technological advancements.