The AP is offering buyouts in a pivot away from newspapers

For 180 years, ever since it was founded by five New York newspapers in 1846 to help share the costs of reporting on the Mexican-American war, newspapers have been a part of the Associated Press’ business. Today, it announced that’s changing, and has offered buyouts to an unspecified number of journalists based in the U.S....

7 April 2026 at 04:45 am

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The AP is offering buyouts in a pivot away from newspapers

For 180 years, the Associated Press (AP) has been a cornerstone of journalism, founded in 1846 by five New York newspapers to share the costs of reporting on the Mexican-American War. Over the decades, newspapers have been a significant part of the AP's business, but that is changing as the organization pivots toward visual journalism and new revenue sources. The AP has recently offered buyouts to an unspecified number of journalists based in the U.S., reflecting its shift in focus and adapting to the economic challenges faced by legacy news outlets.

The AP's history is deeply intertwined with newspapers, but the landscape of journalism has evolved significantly since its inception. Once, newspapers accounted for the majority of the AP's revenue, but now they represent only 10% of the organization's income. This decline is partly due to the withdrawal of major newspaper companies like Gannett and McClatchy, which stopped publishing AP wire content in 2024. Additionally, Lee Enterprises, another large publisher, is seeking an early exit from its contract with the AP, which was set to expire at the end of the year.

Despite these challenges, the AP's leadership insists that the organization is not in trouble. Julie Pace, executive editor and senior vice president of the AP, stated that the changes are being made "from a position of strength" to recognize the evolving customer base. The buyout offers will determine whether layoffs will occur, but Pace emphasized that the AP remains committed to journalism and will continue to have journalists in all 50 states.

The AP is expanding its video teams and adding journalists to focus on topics of known customer interest. This shift toward visual journalism aligns with the growing demand for multimedia content in an era of rapid information consumption. Furthermore, the AP is increasingly looking to tech companies for revenue, with its income from such deals growing by 200% over the past four years. The organization has made strategic partnerships with Google and OpenAI, highlighting its commitment to innovation and adapting to the changing media landscape.

In March, the AP announced plans to invest in artificial intelligence (AI) to develop new revenue streams. This move comes as many traditional news outlets struggle to find sustainable business models in the face of declining advertising revenues and shifting consumer preferences. By leveraging AI and expanding its digital presence, the AP aims to secure its position as a leading global news organization.

The buyout offers for journalists in the U.S. underscore the AP's strategic pivot, but they also reflect the broader challenges faced by the journalism industry. As newspapers struggle to adapt, the AP is taking decisive steps to evolve and ensure its relevance in the 21st century. With a focus on visual journalism, AI, and partnerships with tech companies, the AP is poised to navigate these changes and continue delivering high-quality, credible news to a global audience.

Source: Nieman Lab

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