AP Tells Staff Debt Free, Diversified Revenue Streams But Cash Flow Affected, Hiring Freeze

(PaidContent.org)  This story was written by Staci D. Kramer.

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The Associated Press, source of so much of today's financial news, is doing a little in-house education on its own finances. In a memo to staff sent out yesterday and posted today on Romenesko, AP assured staff it's on a "solid financial footing" with a positive cash flow but is taking steps to keep spending "in line" including a company-wide strategic hiring freeze, which we will re-examine regularly." It also sought to reassure staff on the status of its retirement funds but suggested that staffers directing their own investment plans diversify.

-- AP's revenue mix: Yes, it's more diversified than ever but newspapers still make up 25 percent of AP's revenue and the controversial change in rate structure we've been writing about here. "With the heavy economic difficulties the media industry is facing, and the new rate structure being rolled out to our newspaper members under Member Choice, we are facing a challenging 2009. We remain financially secure, but our cash flow will be affected and, as a result, we will be cautious with new initiatives while looking for opportunities to economize."



By Staci D. Kramer