Media outlet Business Insider has laid off 21% of its workforce, according to an internal memo from CEO Barbara Peng.

The layoffs will impact all departments, although the company has not specified the exact number of employees affected.

This restructuring is aimed at refocusing on its core business and addressing challenges such as declining online traffic and the integration of AI.

AI is central to the company’s strategy, with more than 70% of employees currently using tools like ChatGPT to enhance productivity.

🔗 Source: Adweek

🧠 Food for thought

1️⃣ Media layoffs follow a cyclical pattern of industry disruption

Business Insider’s 21% staff reduction follows a well-established pattern in digital media where layoffs come in waves during periods of industry transformation.

In 2019 alone, approximately 7,800 media jobs were eliminated across the industry, with major digital publishers like BuzzFeed (200 jobs), Vice Media (265 jobs), and Verizon Media (800 jobs) all implementing significant cuts 1.

This cycle of expansion and contraction in media workforces typically coincides with shifts in distribution platforms or business models. BI cites both traffic volatility and AI adoption as driving forces behind their restructuring.

The framing of layoffs as necessary “transformation” rather than cost-cutting has become standard language in the industry, with companies consistently emphasizing strategy shifts while downplaying the human impact, a pattern dating back to the late 1970s when mass layoffs became normalized 2.

What distinguishes BI’s approach is their explicit acknowledgment that 70% of their business remains “traffic sensitive” – a vulnerability many digital publishers share but rarely quantify so precisely.

2️⃣ AI adoption accelerates the redefinition of newsroom roles

Business Insider’s citation of AI as enabling them to “operate more efficiently with fewer resources” represents a significant shift where media organizations are explicitly acknowledging AI’s role in workforce reduction.

The company’s disclosure that 70% of employees already use Enterprise ChatGPT regularly demonstrates how quickly AI tools have penetrated newsroom workflows. This aligns with findings that journalists are rapidly adopting AI for tasks like transcription, translation, and data analysis 3.

This parallels broader industry trends where AI is increasingly used for content generation in data-driven topics like sports and finance, while raising questions about the balance between automation and human oversight 4.