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 07:22 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, particularly through partnerships with artificial intelligence (AI) companies.

The AP announced that it is offering buyouts to an unspecified number of journalists based in the U.S. as part of this strategic shift. While newspapers once accounted for the majority of the AP's revenue, they now make up just 10% of the organization's income. This revenue has fallen by 25% over the past four years, largely due to the withdrawal of content from major U.S. newspaper companies like Gannett and McClatchy in 2024. Additionally, Lee Enterprises, another large newspaper publisher, is reportedly seeking an early exit from its contract with the AP, which was set to expire at the end of the year.

Julie Pace, the AP's executive editor and senior vice president, emphasized that the organization is "not a newspaper company and we haven't been for quite some time." Despite the changes, Pace assured that the AP is not in trouble but is making these adjustments "from a position of strength" to recognize its evolving customer base.

The AP plans to increase its video teams and add journalists to focus on topics of known customer interest. The organization will still maintain journalists in all 50 U.S. states, ensuring comprehensive coverage. The decision to offer buyouts will determine whether layoffs will occur, but Pace highlighted that the AP is proactively adapting to the changing media landscape.

In recent years, the AP has been looking to tech companies for revenue growth, with deals with Google and OpenAI among others. The organization reported that its revenue from such partnerships has increased by 200% over the last four years. This shift toward AI and technology aligns with the broader trend of media organizations adapting to the economic challenges faced by legacy news outlets.

As the AP transitions away from its traditional newspaper roots, it remains committed to providing high-quality journalism while exploring new avenues for growth and sustainability. The buyout offer reflects a strategic pivot toward visual content and innovative revenue streams, ensuring the AP's relevance in an ever-changing media ecosystem.

Source: Nieman Lab

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