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

Google Ends Enterprise Subscription to Financial Times Amid Cost-Cutting Efforts

Google is discontinuing its enterprise subscription to the Financial Times as part of its ongoing cost reduction measures, according to insider sources. This move is part of a broader initiative at the tech giant to streamline expenses, despite the company’s robust financial performance.

Throughout 2025, Google has been implementing various cost-cutting strategies, such as eliminating 35% of managers overseeing small teams and offering voluntary exit programs across different divisions since the beginning of the year. Finance chief Anat Ashkenazi had previously indicated in late 2024 that the company would continue to pursue cost reductions, a goal that remains unchanged even as Alphabet reported impressive Q2 2025 revenue of $96.4 billion.

While these cost reductions may only result in modest savings for Google, they coincide with the company facing challenges in its relationships with news publishers. Recent data from the Digital Content Next trade association revealed a 10% decrease in median referral traffic from Google Search to publishers between May and June this year, with non-news brands experiencing even steeper declines.

Leading news outlets like CNN, Business Insider, and HuffPost have reportedly seen significant drops in traffic, ranging from 30% to 40%, attributed to Google’s AI Overviews feature. This tool has significantly reduced click-through rates to external websites, with data from Pew Research showing that nearly six in ten U.S. adults conducted a Google search in March 2025 that produced an AI-generated summary.

Some observers have likened Google’s decision to cancel its Financial Times subscription to a plagiarist refusing to purchase the textbook they are copying from. The criticism against Google has escalated, with Neil Vogel, CEO of People Inc., labeling the tech giant a “bad actor” at a recent Fortune event and accusing it of using the same bot for crawling websites and supporting AI functions.

Impact on Publishers and Industry Responses

In a scathing op-ed this summer, Digital Content Next CEO Jason Kint condemned Google’s AI overviews for creating a “zero-click” environment where all traffic ends within Google’s ecosystem. This has raised concerns among publishers about the sustainability of their digital presence and revenue streams.

Despite these criticisms and challenges, Google has remained tight-lipped on the matter and did not respond to requests for comments.