AP’s CEO said the company will “trim” 10% of its work force over the next year, due to the cut in fees paid by member newspapers and the ailing economy.
Tom Curley told AP staff via webcast that there would be an elimination of more than 400 jobs worldwide. He expressed hope most cuts will be achieved through attrition, but recognized layoffs are not out of the question.
While AP admits the company is still profitable, it expects a drop in cash flow from $95 million this year to $66 million in 2009, due to a $30 million reduction in fees paid by struggling newspapers.
