Business Insider lays off 21% of staff in AI pivot
- Business Insider's CEO announced layoffs affecting 21% of its staff in an internal memo.
- The company aims to enhance its focus on AI and original reporting as part of its new strategy.
- Critics, including the Insider Union, describe the layoffs as a greedy pivot away from journalism.
In an effort to adapt to changing market demands, Business Insider has announced significant layoffs that will impact a substantial portion of its workforce. On Thursday, May 29, 2025, CEO Barbara Peng issued an internal memo stating that around 21% of the staff across various departments will be affected by this move. This decision aligns with a broader strategy introduced 18 months earlier aimed at establishing the outlet as a leading source for journalism that intersects with technology, innovation, and business reporting. Since Jamie Heller took over as Editor-in-Chief, Business Insider has made strides in enhancing its journalistic standards and increasing original reporting output. The company has reported doubling its original articles while significantly boosting reader engagement in recent months. The current changes come as part of a strategic pivot where the organization plans to exit most of its Commerce business that relied heavily on search while maintaining a few successful verticals. A new platform, BI Live, is slated for launch to enhance reader interactions and promote their journalism. Peng highlighted the role of artificial intelligence in these transitions, noting that approximately 70% of Business Insider's employees are now utilizing Enterprise ChatGPT, with the aim of achieving full adoption across the company. In the past year alone, the publication has introduced several AI-powered products, including an AI-assisted paywall and a generative AI onsite search tool. These products are designed to better serve their audience’s needs and to streamline operations, allowing the company to function more efficiently. The announcement of layoffs has drawn criticism from the Insider Union and The NewsGuild of New York, condemning the decision as a manifestation of Axel Springer’s, the parent company, shift away from journalistic integrity in favor of profit maximization. The layoffs, affecting a significant number of talented staff members, have been described as a detrimental move that undermines the foundation of journalistic endeavor. As Business Insider grapples with these changes, it remains to be seen how the move towards AI and away from traditional journalism will affect its future standing in the industry.