Google Cuts Costs: FT Subscription Slashed

Google Scales Back Media Subscriptions Amidst Cost-Cutting Measures

Sources indicate that Google is discontinuing its enterprise subscription to the Financial Times, and this isn't an isolated instance of media subscription reductions within the company. These adjustments align with broader initiatives aimed at reducing expenditures at the tech giant, even in light of robust financial reports.

Cost Reduction Strategies and Financial Performance

Since January, Google has been actively implementing cost reductions throughout 2025. This includes the elimination of 35% of managerial positions overseeing small teams – those comprised of three or fewer individuals – and the provision of voluntary exit programs across various departments. Finance leader Anat Ashkenazi previously indicated a continued focus on cost optimization, a direction that remains unchanged despite Alphabet’s strong Q2 2025 revenue of $96.4 billion.

Impact on News Publishers and Referral Traffic

While these cuts may represent relatively modest savings for Google, they occur during a period of increasing tension in the company’s relationships with news publishers. Data from Digital Content Next reveals a 10% decrease in median referral traffic from Google Search to publishers between May and June. Non-news brands experienced even more significant declines, with a 14% reduction.

Specific Publisher Traffic Declines

Reports suggest substantial traffic drops for major news organizations. CNN, Business Insider, and HuffPost have reportedly seen declines of 30%, 40%, and 40% respectively, according to data analyzed by SimilarWeb.

The Role of Google’s AI Overviews

Publishers largely attribute these declines to the introduction of Google’s AI Overviews feature. According to Pew Research, this feature has diminished click-through rates to external websites, decreasing them from 56% to 69% since its launch. A Pew analysis of 900 U.S. adults showed that six in ten had used Google Search in March 2025 and received an AI-generated summary as a result.

Google’s Response

Following publication of this report, a Google spokesperson stated: “The assertion that these changes are linked to a diminished commitment to news partnerships is demonstrably untrue. Our partnerships are continually evolving, and we maintain relationships with over 2800 publications globally, having disbursed billions of dollars to publishers, platforms, and content providers.”

Content Licensing and Competitive Landscape

The traffic decline coincides with Google’s reluctance to engage in widespread content licensing, contrasting with competitors like OpenAI. OpenAI has secured agreements with prominent publishers, including The Financial Times, News Corp, and Axel Springer. Google has entered into limited deals, such as one with the Associated Press and an annual agreement with Reddit, reportedly valued at $60 million annually.

Recent reports indicate Reddit is now seeking to renegotiate its contracts with both Google and OpenAI, recognizing the increased value of its content in search results and AI training.

A Contentious Situation

Google initiated preliminary discussions with 20 outlets regarding potential content licensing agreements this summer. However, some view Google’s cancellation of its Financial Times subscription as analogous to plagiarism – benefiting from content without proper compensation.

Criticism from Industry Leaders

At a recent Fortune event, Neil Vogel, CEO of People Inc., the largest digital and print publisher in the U.S., strongly criticized Google, labeling it a “bad actor” and alleging the use of a single bot for both web crawling for search and supporting its AI functionalities.

Opt-Out Options for AI Training

While Google’s approach to AI training differs from other companies, it does provide publishers with the ability to prevent their data from being used for AI training without impacting their search visibility.

Shifting Dynamics in Content Distribution

Vogel stated at the event that the previous arrangement – “Take our content, build your search engine, send us back traffic” – is no longer valid.

Concerns About a “Zero-Click” Environment

Jason Kint, CEO of Digital Content Next, expressed in a recent op-ed that Google’s AI overviews are fostering a “zero-click” environment where all user traffic is directed to Google.

Correction

Note: This article has been updated to include a statement from Google and to correct an inaccurate portrayal of Google’s AI training policies. The initial report incorrectly suggested that publishers could not block Google’s AI systems without losing search traffic. Google provides an opt-out mechanism allowing publishers to prevent AI training while maintaining search access.