The Associated Press announced on Monday that it will offer voluntary buyout packages to an unspecified number of its journalists based in the United States. This move marks a significant acceleration in the news organization's strategic pivot away from its historical reliance on newspaper journalism, which has sustained the company since its founding in the mid-1800s.
Strategic Transformation Amid Changing Media Landscape
AP executives revealed that the organization is intensifying its focus on visual journalism while developing new revenue sources, particularly through partnerships with companies investing in artificial intelligence technologies. This transformation comes as the economic foundation of many legacy news outlets continues to deteriorate, forcing the 170-year-old news cooperative to adapt its business model.
Shrinking Newspaper Revenue
"We're not a newspaper company and we haven't been for quite some time," stated Julie Pace, executive editor and senior vice president of the AP, during an interview. The numbers support her assertion dramatically. Where newspaper companies once represented the lion's share of AP's revenue, they now account for just 10% of the organization's income.
Over the past four years, the AP's revenue from newspapers has declined by a substantial 25%. This decline accelerated when two of the largest traditional newspaper publishers, Gannett and McClatchy, dropped AP services in 2024. More recently, Lee Enterprises, publisher of prominent newspapers including The Buffalo News and St. Louis Post-Dispatch, has sought an early exit from a contract scheduled to expire at the end of 2026.
Staff Reduction Details Remain Unclear
The exact number of journalists who will accept buyout offers remains uncertain, partly by design. The AP does not publicly disclose its total journalist count, though the organization maintains a substantial international presence alongside its U.S. staff. According to Pace, the AP's goal is to reduce its global workforce by less than 5%.
Since buyouts are currently being offered exclusively to U.S. journalists, the reduction among that specific workforce will likely exceed the 5% global target. Whether additional layoffs become necessary will depend entirely on how many employees voluntarily accept the buyout packages.
The News Media Guild, which represents AP journalists, had no immediate comment when reached on Monday regarding the buyout plan.
Historical Context and Structural Changes
The AP traces its origins to the mid-19th century when New York newspapers collaborated to share the costs of reporting beyond their immediate territories. This cooperative structure evolved into a staffing model primarily designed to provide stories to newspapers and broadcasters across individual states.
While the organization has doubled its number of video journalists in the United States since 2022, remnants of this newspaper-focused staffing structure have persisted. The current buyout initiative represents a decisive step toward dismantling these historical remnants and accelerating the organization's transformation.
New Revenue Streams and Strategic Partnerships
The AP's customer base has undergone a dramatic transformation in recent years. Broadcast, digital, and technology companies now dominate where newspaper publishers once prevailed. This shift reflects broader changes in how people consume news today.
"If you can think of a large technology company, they are a customer of ours," revealed Kristin Heitmann, senior vice president and chief revenue officer at AP. The organization has experienced remarkable 200% growth in revenue from technology companies over the past four years alone.
AI and Data Licensing Initiatives
The AP has positioned itself at the forefront of news organizations engaging with artificial intelligence companies. In 2023, the organization became one of the first news outlets to strike a deal with an AI firm, agreeing to lease part of its extensive text archive to OpenAI. Last year, Google contracted with AP to deliver news through its Gemini chatbot, marking the tech giant's first agreement with a news publisher.
The organization has also launched AP Intelligence, a specialized division designed to sell data to financial and advertising sectors. Additionally, AP made its data available on Snowflake Marketplace last year, enabling direct licensing to enterprises building their own systems.
Elections Data and Predictions Markets
The AP's long tradition in counting and analyzing elections data has emerged as another significant growth area. Between the 2020 and 2024 election cycles, the company saw a 30% increase in customers for its election services. This growth received an additional boost last year when major networks including ABC, CBS, NBC, and CNN signed on to use AP's election data services.
In a particularly innovative move last month, the AP agreed to sell U.S. elections data to Kalshi, the world's largest predictions market. This partnership represents yet another frontier in the organization's expanding business portfolio.
Direct-to-Consumer Growth
While traditionally operating as a wholesaler of news to other companies, the AP has witnessed growing interest in its direct-to-consumer product, apnews.com. This platform generates revenue through advertising and donations, providing an additional income stream beyond the organization's traditional business-to-business model.
Editorial Standards and Public Engagement
AP leaders emphasize that these business transformations do not indicate any weakening of the organization's commitment to journalistic standards. "If anything, it makes it more important that we retain these values as we make the transition," Pace asserted, referring to the AP's longstanding reputation for providing fast, accurate, and unbiased news.
The organization is experimenting with new forms of fact-checking, including innovative uses of video technology. Additionally, AP journalists are appearing more frequently in public forums to explain their reporting processes and methodologies.
"I think that authenticity, and the fact that you can associate a real person who is often quite experienced and quite deep on their beats... it builds more credibility," Pace explained. "We're really trying to embrace that because I do think it's vital when there is so much misinformation out there."
Geographic Commitment Maintained
Despite these significant changes, the AP remains committed to maintaining a journalistic presence in all 50 states. The organization is deploying rapid-response teams where staff members, regardless of their geographic base, contribute to coverage of the day's most important stories. Simultaneously, the AP is assigning more journalists to specific beats to break news on topics of known customer interest.
"The AP is not in trouble," Pace concluded. "We're making these changes from a position of strength, but we're doing so now to recognize our changing customer base."
