Business Insider’s Union Slams Layoffs In Scathing Letter: ‘Brazen Pivot Away from Journalism Toward Greed’

(AP Photo/Franka Bruns)

The union representing Business Insider’s employees issued a scathing statement attacking the outlet’s owner Axel Springs on Thursday, following the announcement it was laying off some 20 percent of its workforce.

“The layoffs of our talented co-workers and union members is another example of Axel Springer’s brazen pivot away from journalism toward greed,” began the statement from Insider Union and 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,’” continued the statement, adding:

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.

Shockingly, in the same email announcing the layoffs, management also says its “going all-in on Al,” patting themselves on the back about Al use in our newsroom. To say this was tone-deaf to include in an email on layoffs would be an understatement.

Business Insider’s CEO Barbara Peng announced the layoffs in a Thursday memo saying, “We are reducing the size of our organization, a move that will impact about 21% of our colleagues and touch every department. She added that the company was “scaling back on categories that once performed well on other platforms but no longer drive meaningful readership or aren’t areas where we can lead.”

The Union pulled no punches in shading the direction the company is taking, adding, “Our position as a union is that no Al tool or technology should – or can – take the place of human beings. There is no Business Insider – or Axel Springer, for that matter – without us. Each time we’ve faced layoffs as a union, we’ve come together and fought for voluntary buyouts and a better deal. We will continue that fight now.”