Business Insider is laying off about 21 per cent of its employees in a major restructuring move. The decision comes as the company faces declining web traffic and changing consumer habits, particularly the rise of generative AI tools such as ChatGPT that are reshaping how people consume news.
The company, headquartered in New York, is adjusting its business model to cope with reduced visibility through search engines. Despite generating twice the revenue per visit compared to two years ago, a significant portion of its business remains highly dependent on web traffic volume. This volatility has prompted the company to trim its workforce to better withstand unpredictable drops in traffic.
Business Insider is also ramping up its use of artificial intelligence across its operations. A large number of employees are already using Enterprise ChatGPT, and several AI-powered tools are in place to improve not just content production but also user experience. As part of its content strategy revamp, the company will now focus more on high-engagement topics and significantly scale back its commerce-related initiatives.
To diversify its revenue streams, the company is launching a new events-focused division called BI Live. The events arm is already seeing early interest and the company plans to continue building the team.
Earlier this year, the Washington Post and the Associated Press also trimmed their staff by four percent and eight per cent respectively. These actions reflect an effort in the media industry to cut costs and modernise to keep up with evolving reader behaviour and technological shifts.
