(Reuters) -Business Insider is laying off about 21% of its workforce, an internal memo showed on Thursday, as the financial news outlet grapples with shrinking search traffic and the growing use of generative AI tools such as ChatGPT.

The New York-based company joins several digital media companies in restructuring operations as consumers increasingly depend on artificial intelligence for news synopsis, which is eating into web traffic.

In the memo, CEO Barbara Peng told staff the company now generates twice as much revenue for each website visit as it did two years ago, but 70% of its business still has some degree of traffic sensitivity.

"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," Peng said in the memo seen by Reuters.

The New York-based company is accelerating adoption of AI, with a majority of employees already utilizing Enterprise ChatGPT and several AI-driven products to enhance operations and reader experience, Peng said.

The website is realigning its content strategy to concentrate on areas that attract high reader engagement, and is exiting the majority of its commerce business, Peng said.

It is also launching a new events business called BI Live, Peng said, adding that it has already seen some demand and will continue to build the team.

Earlier this year, Washington Post and Associated Press laid off 4% and 8% of their workforce respectively in a bid to cut costs and modernize operations.