Associated Press confirms total of 90 layoffs this week

Posted by Emma Heald on November 20, 2009 at 10:47 AM

After much speculation in the past few days about exactly how many staff were being laid off, the Associated Press has announced that a total of 90 employees worldwide have been let go this week, and that the company has thus reached its goal of cutting annual payroll costs by 10 percent.

A press release specified that this target had been set in October 2008 and that most of the reductions had been achieved through a continuing hiring freeze and attrition, and buyouts. The total number of layoffs this year has not been confirmed, and the AP said that the figure did not necessarily equate to 10 percent of staff, because of differences in wages.

The News Media Guild reported yesterday that 71 AP union members had been laid off, including 42 news staff, 22 editorial assistants, six photographers, and an office assistant. Twenty of those let go were based in New York City.

The cut in payroll expenses is intended to compensate for an expected 6% fall in revenue this year. The Associated Press has reduced rates for its member newspapers this year and will reduce them further in 2010. Even so, the news cooperative has been faced with threats of cancellations from some member newspapers as they are faced by financial difficulties. A number of these have since changed their minds, however.

Source: Associated Press