Indonesian Political, Business & Finance News

AP Cuts Hundreds of Staff, AI Blamed as the Culprit

| Source: VIVA Translated from Indonesian | Business
AP Cuts Hundreds of Staff, AI Blamed as the Culprit
Image: VIVA

The use of artificial intelligence (AI) in the media industry is no longer just a production aid. This technology is now being aggressively deployed by companies to overhaul business structures, including reducing human labour. As a result, waves of journalist layoffs are becoming evident. In the United States, this phenomenon has sparked serious conflicts between media companies and workers. The Associated Press (AP) and ProPublica are two recent examples of how AI usage is causing tensions, from mass layoffs to strike actions. The Associated Press has reportedly sent layoff notices to at least 120 journalists in the United States. Most of them are experienced workers. The company also offered a buyout scheme or severance package, but this step was taken without notice or negotiation with the union. AP management described the move as part of a business transformation amid changes in the media landscape. The company no longer relies on the traditional newspaper-based business model. “We are not a newspaper company and have not been for a long time,” stated management, as reported by People’s World on Monday, 13 April 2026. Newspaper revenue now contributes only about 10 percent to AP, down 24 percent over the past four years. Meanwhile, the company relies on revenue from AI, digital markets, cloud services, and visual and video content. The phenomenon of AI-driven layoffs is not limited to one company. Financial analysts from Goldman Sachs estimate that the impact is widespread across the United States. They noted that AI has caused around 5,000 to 10,000 layoffs per month last year. This year, the number is projected to rise to 16,000 layoffs per month. Companies describe this step as “reinvestment” or reinvestment in technologies such as software, cloud, and machine-based work systems. However, criticism on social media claims that this approach sacrifices journalism quality amid the public’s need for accurate and independent information. Amid this trend, around 150 ProPublica staff took firm action. They held a vote, and 92 percent supported a strike action related to working conditions and the threat of AI usage.

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