Business Insider is tightening its belt.
On Thursday, the company announced a major staff reduction, letting go of 21% of its workforce.
The decision follows what the company called “extreme traffic drops” across key content categories.
What’s Behind the Layoffs?
According to an internal memo shared with staff, CEO Barbara Peng explained that the media outlet is pulling back from content areas that once thrived on third-party platforms like Google.
But times have changed.
In her words, the company is “scaling back on categories that once performed well on other platforms” and taking a step back from its commerce-focused content, which relied heavily on search engine traffic.
This shift appears to reflect the broader industry trend being called “Google Zero” – a term used to describe how AI-powered search features are keeping users on search result pages rather than sending them to websites.
Even though Google CEO Sundar Pichai has denied significant impact, many publishers say otherwise.
Why It Matters
Traffic is the lifeline of most online media companies.
But as Peng pointed out, “70% of our business has some degree of traffic sensitivity.”
That means when fewer people land on their site, especially from search or social media, their revenue takes a direct hit.
In other words: Less traffic, less money.
Commerce Content Takes a Hit
One major shift?
Business Insider is pulling back from its commerce section, the part of the site that published product roundups, gift guides, and shopping tips designed to earn commissions from clicks and purchases.
That section worked well when people found it through Google.
But now? AI-generated summaries and shopping links are eating up those clicks.
If you’ve ever searched for “best laptops for students” and found a list directly on the search page, you’ve already seen this in action.
Doubling Down on AI
Rather than fight the tide, Business Insider is leaning into it.
They’re now:
- Rolling out Enterprise ChatGPT to boost productivity
- Experimenting with AI-powered site search
- Launching an AI paywall
- Exploring other generative AI tools to support their newsroom
It’s a bold bet: less dependence on traffic from Google and more investment in tools that could make their content smarter, faster, and more tailored to reader behavior.
Is AI the Future of Newsrooms?
That’s the million-dollar question.
On one hand, AI tools can help writers brainstorm, edit, and fact-check at lightning speed.
On the other hand, over-reliance on AI could risk losing the human voice that makes journalism feel… well, human.
For now, Business Insider seems to be walking that tightrope, shrinking in one direction while expanding in another.
What This Means for the Media Industry
Business Insider isn’t alone.
Many digital publishers are feeling the sting of algorithm changes, AI features, and shifting reader behavior.
Here’s what we’re seeing across the board:
| Trend | Impact on Publishers |
|---|---|
| AI answers in search | Less organic traffic |
| Social platform algorithm tweaks | Decline in referral traffic |
| Ad revenue fluctuations | Less predictable income |
| Reader trust in media | Harder to win, easier to lose |
So, What’s Next?
That depends on how well publishers can adapt.
- Will more companies trim their staff to survive?
- Can AI become a co-pilot instead of a crutch?
- Will readers support media directly through subscriptions and memberships?
Only time will tell.
But one thing’s clear: The way we create, find, and consume content is changing, and fast.
