UPDATE: Google has just announced it is terminating its enterprise subscription to the Financial Times, reflecting a serious shift in its cost-cutting strategy. This decision is part of a broader effort to reduce expenses, despite the company reporting robust financial results.
Since January 2025, Google has been actively implementing cost reductions, including eliminating 35% of managers overseeing small teams and offering voluntary exit programs across several divisions. This aggressive approach comes even as Alphabet reported a staggering $96.4 billion in revenue for Q2 2025.
Financial chief Anat Ashkenazi indicated that the company would continue pursuing these cost-cutting measures, despite its strong financial performance. While these cuts might save Google thousands, they come at a time when relationships with news publishers are increasingly strained.
Recent data from Digital Content Next revealed that median referral traffic from Google Search to publishers dropped by 10% between May and June 2025. Non-news brands experienced an even sharper decline of 14%. Major news outlets, including CNN, Business Insider, and HuffPost, have reported traffic declines of 30%, 40%, and 40% respectively, according to SimilarWeb.
Publishers attribute these declines to Google’s AI Overviews feature, which has significantly reduced click-through rates to external sites from 56% to 69% since its launch. A recent analysis by Pew Research found that six in ten U.S. adults conducted at least one Google search in March 2025 that produced an AI-generated summary, further complicating the landscape for news publishers.
Critics have drawn parallels between Google’s decision to cancel its Financial Times subscription and a plagiarist refusing to invest in the textbook they are copying from. During a recent Fortune event, Neil Vogel, CEO of People Inc., did not hold back, labeling Google a “bad actor” for its practices that seem to prioritize AI features over fair compensation for content creators.
In a separate op-ed this summer, Jason Kint, CEO of Digital Content Next, criticized Google’s AI overviews for creating a “zero-click” environment where “all traffic dead ends at Google.”
As these developments unfold, the implications for both Google and news publishers are significant. The tech giant’s strategy could reshape the digital news landscape, leaving publishers scrambling for traffic and revenue.
What’s next? Industry experts are closely monitoring Google’s next moves, as the tension between tech giants and media outlets continues to escalate. Google has not yet responded to requests for comment regarding these changes.
Stay tuned for updates on this developing story that is poised to impact both the tech and media industries significantly.
