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AAP to cut up to 25 positions as demand for services reduces

Australian Associated Press (AAP) has launched a voluntary redundancy program – with between 20 and 25 positions to be cut – as the wire service contends with reduced market demand.

AAP is jointly owned by Fairfax (47%), News Corp (45%) and Seven West Media (8%) and provides a stream of breaking news and information to paying news outlets, which then syndicate the content. Demand for wire services has grown as traditional media outlets scale back their newsrooms, however AAP said the cut backs can be attributed to some media customers reducing or dropping services “while rationalising their own businesses”. 

AAP is seeking short-term cost control 

The redundancies will target news and data staff as a “necessary part of short-term cost control”, AAP said.

The company said the move will enable it to modernise its news services to “help its shareholders, retain long-standing customers, and find new customers”.

Editor-in-chief Tony Gillies noted while AAP is a mature business, it is operating in a massively disrupted environment.

“We are in a constant state of change because you have to be in order to remain relevant,” he said.

“While we are extremely proud of our news innovations and ‘can do’ attitude, we need to do even more.”

Gillies said all parts of AAP’s wire service were being reviewed so it could focus on the services that deliver for its paying subscribers.

“AAP is working with its key customers and shareholders to refine news services and build cost-saving solutions for them,” a release from AAP added.

AAP closed its New Zealand Newswire (NZN) on April 27 because it was unable to find enough customers to sustain the operation.

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