The Associated Press has laid off “dozens” of news staff as part of the agency‘s bid to reduce staffing costs by 10% this year.
The moves come as the 163-year-old cooperative wire agency has grappled with falling revenues, mutiny from its members and well-publicised battles against search engines and aggregators that it accuses of making money off the back of its services.
While US news media was buzzing yesterday as first word of the cuts began to filter out, the AP — which prides itself on fast breaking news — was itself uncharacteristically slow in reporting what was happening.
When it eventually came, the AP story didn’t say how many staff were being laid off, but the News Media Guild, which represents around 1,300 employees in the US, said as of Tuesday evening 38 Guild-covered reporters, editors and photographers had been told they were no longer required. It dubbed the day “Black Tuesday”.
AP said its cost cutting goal was set late last year as it prepared to lower fees for newspapers and broadcasters that had been hit by recession and the shift of advertising to the Internet.
The AP story said:
AP’s revenue is expected to fall about 6 percent this year to roughly $700 million.
Hoping to minimize layoffs, the AP imposed a hiring freeze late last year and offered early retirement packages to longtime employees over the summer. About 100 opted for those packages.
It’s been a tough year for the news business in the United States. Newspaper circulation across the country plunged by an average 10.6% in the six months to 30 September, while earlier this month the struggling Chicago Tribune, Los Angeles Times and other Tribune Co newspapers planned to do an AP cold turkey for a week as part of a test to see if all ties with the news agency can be severed next year.
The AP has promised members rate reductions averaging around 20%, but with its content perceived to be increasingly less relevant and the costs for the service harder to sustain, many question what the future holds for the news agency.
AP supremeo Tom Curley has been aggressively fighting (alongside Rupert Murdoch) giant news search services such as Google and Microsoft saying they should be made to pay for AP content. Curley says sites such as Google have reaped a fortune off AP articles, photos and video without paying fair compensation.
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