The Washington Post is laying off a quarter of its workforce from Arc XP, the publisher’s stand-alone software unit, the latest change as the company aims to turn its business around under new leadership.
The Wall Street Journal reports Arc XP, which began as an in-house publishing tool, has expanded in recent years to service non-Post businesses, such as Reuters, Gray Media and France’s Le Parisien. The unit, which a couple of years ago had considered a spinoff or sale, also has serviced non-publishing businesses, such as the National Basketball Association’s Golden State Warriors and energy company BP.
The Post said Monday that the publisher is committed to Arc XP. The company said it has plans to update its software product with artificial intelligence and analytics capabilities.
“To continue this leadership amidst a new wave of change within our industry requires us to act with urgency and think differently,” said Matt Monahan, president of Arc XP, in an internal note obtained by The Wall Street Journal. “This decision will help us align to a plan for the future that is both ambitious and achievable,” he added, referring to the cuts.
The Post is undergoing a host of changes amid pressure to reverse its fortunes and generate a profit.
The Post’s owner, Jeff Bezos, who has told the newsroom that he wants the company to return to profitability, tapped William Lewis as publisher in late 2023.
The news publisher had faced business challenges including declining traffic and subscriptions following a surge during the Trump presidency. It lost $77 million in 2023 and had faced a digital audience decline of around 50% since 2020.
The Post has since announced a number of leadership changes and made some strides to improve its business, according to people familiar with the matter.
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