• by Ray Schultz , Yesterday

Axel Springer’s Business Insider is laying off 21% of its staff as part of an ongoing strategic shift.  

It was not clear at deadline how many employees would be affected, but the layoffs are touching every department.  

In a memo to staff, CEO Barbara Peng noted that “70% of our business has some degree of traffic sensitivity," according to reports. "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.” 

As part of the overall plan, Business Insider is “exiting the majority of our Commerce business, given its reliance on search, and maintaining a few high performing verticals,” Peng continues.

The publisher is “going all-in on AI.” Peng writes, “Over 70% of Business Insider employees are already using Enterprisse 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.” Parent Axel Springer has been a persistent advocate for AI. 

In addition, Business Insider is “launching and investing in BI Live, our new live journalism events business.”

The layoff announcement drew quick condemnation from the Insider Union of the NewsGuild of New York.  

“We were notified that Business Insider management intends to lay off about 20 percent of our members as part of their ongoing “strategy” to “build toward something new.” 

Let’s be clear. This is far from anything new. This is the third round of layoffs in as many years and it is unacceptable that union members and other talented coworkers are again paying the price for the strategic failures of Business Insider’s leadership.  

Axel Springer is a multi-billion dollar firm whose digital outlets and media businesses generate the majority of its revenue. "The layoffs of our talented co-workers and union members is another example of Axel Springer’s brazen pivot away from journalism toward greed.”