AP Offers Buyouts to More Than 120 Journalists as Newspaper Revenue Collapses
The Associated Press offered buyouts to more than 120 U.S. journalists on Monday as the news organization shifts away from its 170-year focus on serving newspapers. The buyouts are part of a larger effort to cut global staff by less than 5% and reshape the company around video, digital, and artificial intelligence revenue streams.
Newspaper revenue, once the AP's primary income source, now accounts for just 10% of the organization's earnings. Over four years, newspaper revenue declined 25%. Major publishers including Gannett, McClatchy, and Lee Enterprises have dropped or are seeking to exit contracts with the AP.
"We're not a newspaper company and we haven't been for quite some time," said Julie Pace, AP's executive editor and senior vice president.
The Union Objects to AI Strategy
The News Media Guild, which represents AP journalists, criticized the buyout approach in a statement Monday. The union said the AP "continues to get rid of experienced staff and flirt with artificial intelligence" while refusing to offer workers training or tools to adapt.
The union also said the AP ignored a request last week to negotiate over how the company will use AI. The AP did not immediately respond to that claim.
New Revenue Sources Drive the Shift
Technology and AI companies now dominate AP's customer base. The company has seen 200% growth in revenue from technology companies over the past four years, according to Kristin Heitmann, AP's chief revenue officer.
The AP signed a deal with OpenAI in 2023 to license its text archive. It launched on Snowflake Marketplace to license data to enterprises building AI systems. Google contracted with AP last year to deliver news through the Gemini chatbot-the tech giant's first deal with a news publisher.
Last month, the AP agreed to sell U.S. elections data to Kalshi, a predictions market platform. Elections data has become a growth area; AP saw a 30% increase in customers between the 2020 and 2024 cycles.
Staffing Structure Built for a Different Era
The AP's U.S. staff structure reflects its origins as a cooperative of 19th-century New York newspapers sharing reporting costs. Despite doubling its video journalists since 2022, the organization still maintains a geographic staffing model designed primarily for newspapers and broadcasters.
Pace said the company is deploying rapid-response teams where journalists from any location contribute to the day's major stories. The AP is also adding journalists focused on breaking news in areas of customer interest while maintaining a presence in all 50 states.
Accuracy and Credibility Remain Central
Pace said the transition does not weaken AP's standards for speed, accuracy, and impartial reporting. "It anything, it makes it more important that we retain these values as we make the transition," she said.
The AP is testing new fact-checking methods using video and putting journalists on camera to explain their reporting. Pace said associating stories with experienced, named journalists builds credibility in an environment filled with misinformation.
For writers navigating similar shifts in the media industry, understanding AI for Writers and Generative AI and LLM is increasingly essential as news organizations adopt new technologies.
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