The digital news site Business Insider has said that it will let go of about 21% of its staff. According to Peng in a company memo, this decision is because of the difficulties caused by changing traffic patterns and people turning more to AI tools to read news.
Learning About the Layoffs
Reducing the team was a result of a combination of various circumstances.
- Traffic Sensitivity: In growing revenue by double per visit over the past two years, Business Insider is largely reliant on web traffic. The majority or around 70%, of its revenues depends on how people use the internet.
- Shift to AI Tools: The firm has boosted the use of AI tools, with nearly three quarters of its employees benefiting from Enterprise ChatGPT and further AI solutions to boost efficiency and benefit readers.
- Strategic Refocusing: Business Insider is moving from its general Insider model to focusing just on business, technology and innovation news through Business Insider. BI is closing most of its commerce business and focusing instead on BI Live for events.
Industry-Wide Trends
This change from Business Insider comes as several media companies are changing to handle digital changes and budget stresses. Likewise, there have been staff cuts at The Washington Post and the Associated Press.
Effects on the Company’s Staff
Anyone whose position ended because of the pandemic will be covered by the company for 13 weeks from the start of the month. Barbara Peng thanked those employees for what they did to help Business Insider get where it is today.
Looking Ahead
Despite obstacles, the company is working to grow by using AI and making sure its articles attract the most attention. By introducing BI Live, the company hopes to involve the audience more directly, fitting with their goal to keep up with new trends in media.
It reveals that digital media is continuing to develop and that companies must be adaptable to keep their operations going with these changes.