The Associated Press has implemented a hiring freeze this week in light of the current economic crisis, it announced in a memo posted on Romenesko’s blog.
“As the economy falters, it is imperative that we keep spending in line with revenue. Given these economic times, AP, like most companies, is being prudent about hiring and spending,” the memo states.
Despite the decision, the AP says it’s “on solid financial footing, thanks to modest revenue growth and responsible expense management over the past few years” as well as being debt free.
It also sites the controversial new rate restructuring as one of the reasons that it expects to face a "challenging 2009." A number of newspapers unhappy with the new plan have said that they intend on ending their contract with AP once their current contract expires.
