Google isn't kidding around about cost cutting, even slashing its FT subscription

TechCrunch
TechCrunch
3M ago
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Google is terminating its Financial Times enterprise subscription as part of broader cost-cutting measures, despite strong financial performance.
Google isn't kidding around about cost cutting, even slashing its FT subscription
A What happened
In a significant move, Google has decided to terminate its enterprise subscription to the Financial Times, reflecting its ongoing cost-cutting initiatives. These measures have included a reduction of 35% in managerial roles overseeing small teams and the introduction of voluntary exit programs across various divisions. Despite reporting robust financial results with $96.4 billion in revenue for Q2 2025, Google is grappling with strained relationships with news publishers. Recent data indicates a 10% drop in referral traffic from Google Search to publishers, with some major outlets experiencing declines as steep as 40%. This downturn is largely attributed to Google's AI Overviews feature, which has diminished click-through rates to external sites. Critics, including industry leaders, have condemned Google for its practices, suggesting that the company is undermining the very publishers it relies on for content.

Key insights

  • 1

    Cost-Cutting Measures: Google is implementing extensive cost reductions across its operations.

  • 2

    Declining Publisher Traffic: Referral traffic from Google to news publishers has significantly decreased.

  • 3

    AI Overviews Impact: Google's AI feature is criticized for creating a 'zero-click' environment.

Takeaways

Google's decision to cut its Financial Times subscription highlights the ongoing tension between tech companies and news publishers.

Topics

Business & Markets Economy Startups/VC