The Associated Press (AP) announced Monday that it plans to reduce its workforce by 8% through a combination of layoffs and voluntary buyouts as part of a move to modernize the organization and accelerate its digital transformation efforts, according to Axios.
The news agency, a not-for-profit organization, explained that the decision was driven by the need to reinvest its revenues back into the business, with a focus on adapting to the demands of the media landscape.Â
In recent years, the AP has sought to diversify its income streams, including efforts to expand its advertising revenue. However, the broader advertising market has proven challenging for news organizations amid a slow recovery from the pandemic and shifting consumer behaviors.
In a memo to staff, AP CEO Daisy Veerasingham emphasized that the restructuring will primarily impact less than half of the company’s news division.Â
The company will offer voluntary buyouts to eligible employees based on factors such as department, role, and tenure.Â
Additionally, AP has reached a tentative agreement with the News Media Guild to extend buyout offers to some unionized employees in the U.S., pending union ratification.
The cuts reflect wider trends in the media industry, where numerous companies have made similar staff reductions this year due to a slowdown in advertising revenue and declining subscriptions.
Veerasingham acknowledged the difficult nature of the decision but stressed that the changes are necessary to address the changing needs of AP’s audience.Â
The layoffs and buyouts mark a significant moment in the AP’s ongoing transformation as it seeks to position itself for long-term sustainability.
