The Associated Press (AP) announced on Monday that it intends to reduce its workforce by approximately 8%, primarily through voluntary buyouts, with some layoffs also expected. This decision is part of a strategic shift aimed at accelerating the organization’s transition to a digital-first model.
The news comes during a challenging period for the media industry, which has faced ongoing financial difficulties exacerbated by changes in consumer behavior and the aftermath of a busy presidential election cycle. The AP is notifying eligible employees about buyout offers, which will include severance pay and partial health coverage for 18 months. Notifications regarding job eliminations will be communicated over the coming weeks.
While the AP has historically been recognized as one of the largest newsgathering organizations globally, it now refrains from disclosing its current staff size, making it difficult to determine the exact number of employees affected by these cuts. The organization indicated that less than half of the anticipated reductions would impact its news staff, with the majority occurring within the United States.
The News Media Guild reported that 121 of its members would be offered buyouts, although the AP did not provide a specific estimate for the total number of job cuts among union members.
Experts have noted that the news industry has struggled to find sustainable solutions to its financial challenges. Gabriel Kahn, who leads the media, economics, and entrepreneurship program at USC Annenberg School for Communication and Journalism, stated, “They’ve pulled the plug out of the bathtub and we’re watching the water going down the drain,” reflecting the ongoing decline in visibility and revenue for journalism, particularly due to shifts in social media algorithms and the rise of artificial intelligence.
Daisy Veerasingham, AP’s president and CEO, emphasized the need for transformation in the media sector, stating, “Our customers — both who they are and what they need from us — are changing rapidly. This is why we’ve focused on delivering a digital-first news report.” The AP plans to place greater emphasis on visual journalism, integrating photos and videos into its storytelling.
Earlier this year, significant news organizations like Gannett and McClatchy announced they would cease purchasing news from the AP, with Gannett ending a relationship that had lasted over a century. Despite diversifying its revenue streams, including philanthropic funding, the AP continues to grapple with the broader challenges facing the news industry.
Veerasingham noted the AP’s critical role in the news ecosystem, particularly during U.S. elections, where it experienced unprecedented usage of its live video, election data, and interactive products. The AP has reached a tentative agreement with its union regarding the buyouts, pending ratification by its members.
Vin Cherwoo, president of the News Media Guild, expressed disappointment over the situation but acknowledged the difficulties faced by news organizations nationwide, stating, “Sadly, it is apparently what is needed.”
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