People Inc., the media powerhouse under the leadership of Barry Diller, is undergoing a significant workforce reduction as it navigates a shifting digital landscape. On Thursday, the company—formerly known as IAC—announced the layoff of 195 employees, primarily impacting its print and legacy web divisions. This marks the second major round of staff cuts this year as the organization seeks to finalize a restructuring effort aimed at achieving $40 million in annual savings.
A Pivot Away from Algorithmic Dependency
The reorganization is largely driven by a strategic move to insulate the company from the volatility of search engine traffic. CEO Neil Vogel has been vocal about reducing the firm’s reliance on Google, noting in September that the company has successfully diversified its revenue streams and audience reach. According to Vogel, traffic from Google now accounts for only 20 percent of the firm’s total web audience, a milestone he described as removing a critical “risk” from the business model.
By de-emphasizing its dependence on the open web, People Inc. is shifting its focus toward direct-to-consumer relationships. The company currently commands 11 million print subscribers and is aggressively moving into member-based models, such as the People VIP program and exclusive clubs for its Southern Living brand. This transition represents a broader trend in the publishing industry: moving away from chasing ad-driven search traffic and toward building sustainable, loyalty-based communities.
The Role of AI in Content Scaling
Despite the workforce reductions in legacy areas, the company is not retreating from content production. Vogel emphasized that the firm produces more content than any of its competitors, and it plans to continue investing in new projects through 2027. While human labor remains at the heart of their brand identity, the company is increasingly integrating artificial intelligence to streamline internal workflows and processes.
“We make more content than anybody in our space by magnitudes,” Vogel said. “It is all made by people. Now we use AI to help processes.” This approach highlights a common industry strategy: leveraging generative technology to enhance efficiency while maintaining a human-centric creative core. Notably, the firm’s hiring strategy reflects this evolution, with the company adding 320 new employees this year, balancing the layoffs with a need for talent aligned with their “prosperous future.”
Strategic Shifts and Failed Mergers
The internal restructuring comes on the heels of a failed high-profile business maneuver. People Inc. had previously sought to acquire MGM Resorts in an $18 billion bid, an effort Barry Diller described as an “AI-proof” investment in physical experiences like casinos and resorts. However, recent developments indicate that the merger talks have officially concluded without an agreement. MGM Resorts CEO Bill Hornbuckle confirmed on Wednesday that discussions have ended, and a new voting agreement now limits People Inc. from further increasing its ownership stake in the gaming giant.
As the company prepares to discuss its path forward following its November 3 earnings report, the focus remains clear: shedding legacy weight to lean into a more diverse, member-centric media conglomerate. While the reduction of 195 roles is a stark reminder of the current volatility in the publishing sector, People Inc. is positioning itself as a modern media player that views the traditional “Google-first” internet as a relic of the past. By combining human-led storytelling with strategic AI implementation and a push for subscription-based loyalty, Diller’s empire is betting that it can survive the rapid transformations reshaping the industry.
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