McClatchy: Cutting Jobs, Agentifying the Enterprise
Mark Keierleber at Straight Arrow News:
Just last week, dozens of reporters with at least 17 McClatchy newspapers from coast to coast — including the Miami Herald, The Kansas City Star and the Sacramento Bee — were laid off as the company pivots toward lifestyle content written by artificial intelligence chatbots.
At the Herald, which has won 24 Pulitzer Prizes, including one this year for reporting that led to sex-trafficking charges against Jeffrey Epstein, more than one-third of the editorial staff was let go as the struggling newspaper chain deals with a dwindling readership and a 41% decline in consumer revenue.
The email also recognized McClatchy employees with work anniversaries, including a reporter for the Lexington Herald-Leader in Kentucky, who has been with the company for more than 40 years. That reporter was among the lucky ones. At the Herald-Leader, which has won three Pulitzer Prizes over the past four decades, McClatchy slashed the newsroom staff by more than half.
While McClatchy journalists blasted the layoffs as a devastating loss for local news, company executives framed them as necessary to compete against social media influencers — and survive industrywide woes. Newspapers nationwide have struggled for decades, and some 40% of all local U.S. newspapers have closed shop in the past decade, including more than 130 outlets in the last year alone.
But more than other news companies, McClatchy is leaning into AI as the answer to the existential threats facing the industry.
Even before the layoffs announced last week, McClatchy executives made clear they believe the future of the news industry is AI.
During a contentious, off-the-record virtual town hall in May, company executives said their business was in freefall — and positioned AI as its savior. Executives pleaded with skeptical journalists to get on board, and issued what appeared to be a threat: Embrace AI or get out of the way.
“We have a company-wide effort to agentify the entire enterprise,” McClatchy CEO Tony Hunter said during the town hall, a recording of which was obtained by Straight Arrow.
