The Associated Press, founded in the mid-1800s to help New York newspapers share reporting costs, is offering buyouts to an unspecified number of U.S.-based journalists — the latest move in a long-running transformation from wire service to technology data company.
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The News Media Guild, which represents AP journalists, said more than 120 staff members received buyout offers on Monday. AP executive editor and senior vice president Julie Pace said the goal is to reduce global headcount by less than 5%, though she acknowledged the cut among U.S. staff would likely exceed that figure depending on how many people accept.
“We’re not a newspaper company and we haven’t been for quite some time,” Pace said.
The numbers back her up. Over the past four years, AP’s newspaper revenue has fallen 25%. Big newspaper publishers, once the organization’s financial foundation, now account for just 10% of income. Gannett and McClatchy both dropped AP in 2024. Lee Enterprises — publisher of The Buffalo News, the St. Louis Post-Dispatch, and the Richmond Times-Dispatch — is now seeking an early exit from a contract due to expire at the end of 2026.
Where the growth is coming from
While the newspaper business contracts, AP’s technology revenue has grown 200% over the same four-year period. Kristin Heitmann, senior vice president and chief revenue officer, put it plainly: “If you can think of a large technology company, they are a customer of ours.”
AP was among the first news organizations to move aggressively into AI deals, agreeing in 2023 to lease part of its text archive to OpenAI. It has since launched on Snowflake Marketplace to license data directly to enterprises, stood up AP Intelligence to sell data to financial and advertising sectors, and last year secured a deal with Google to deliver news through the Gemini chatbot — Google’s first content deal with a news publisher.
Elections data is another growth vector. AP saw a 30% increase in election data customers between the 2020 and 2024 cycles, and last month agreed to sell U.S. elections data to Kalshi, the world’s largest predictions market. ABC, CBS, NBC, and CNN all signed on to the AP elections service last year.
What the restructuring looks like
Beyond the headcount reduction, AP is doubling down on video — it has already doubled the number of U.S. video journalists since 2022 — and deploying rapid-response teams that contribute to major stories regardless of geographic base. The organization says it will maintain a presence in all 50 states.
The union is pushing back. In a statement, the News Media Guild said AP “refuses to offer [staff] appropriate training and tools” and is “flirting with artificial intelligence — ignoring the opportunity to differentiate AP news stories as ones that are and always will be created by human journalists.” The union also said AP declined a request last week to bargain over AI use.
AP did not immediately comment on either claim.
Pace framed the restructuring as a strategic choice made from stability, not distress. “The AP is not in trouble,” she said. “We’re making these changes from a position of strength.”
