(DailyEmailNews.com) – In a new sign of mainstream media trouble, The Associated Press, struggling amid financial pressures and a rapidly changing media landscape, is reducing its workforce by 8%.
This move comes after major clients like Gannett and McClatchy dropped their services.
The Associated Press (AP) is set to implement an 8% reduction in its workforce in response to a challenging media industry environment.
This decision involves offering buyouts to both news and business staff.
Less than half of these reductions will affect the news division, underscoring a strategic move to preserve AP’s role as an independent news organization amidst revenue downturns.
The workforce reductions are due to an unsettling financial scenario further aggravated by the loss of key clients like Gannett and McClatchy.
This financial strain has led AP to offer buyout packages to up to 121 employees, an effort aimed at avoiding layoffs.
The AP News Guild has expressed concern over the impact on global bureaus and administrative staff.
In the midst of these challenges, AP remains one of the few news organizations with a global coverage footprint.
Daisy Veerasingham, AP’s CEO, highlighted the need to embrace digital-first journalism to meet fluctuating customer demands.
Veerasingham remarked, “Evolving as an organization is not easy but it is necessary.”
The AP’s decision to cut staffing levels follows a temporary increase to manage the U.S. Election Day coverage.
This highlights the volatile nature of media staffing in the context of maintaining comprehensive global news reporting.
The AP’s plan includes seeking philanthropic support to help bridge financial gaps and has set up a nonprofit for local and statewide funding initiatives.
Despite financial constraints, the AP continues to play a crucial role in election coverage in the U.S., relying heavily on live video and interactive products.
Partnerships like the one with OpenAI, which involves licensing news content, are part of AP’s strategy to explore new revenue streams.
CEO Daisy Veerasingham has confirmed that major structural changes lie ahead, focusing on visual and digital-first journalism to adapt to the media sector transformations.
“This is about ensuring AP’s important role as the only truly independent news organization at scale during a period of transformation in the media industry,” The Associated Press said.
All eyes are now on how AP navigates these waters to maintain its 50-state presence and global news coverage while easing financial constraints.
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