The Associated Press has instituted a hiring freeze to “keep spending in line with revenue,” Editor & Publisher reported.

The memo detailing the hiring freeze states that although “newspaper revenue accounts for a lower proportion of AP's total revenue than it has in the past, it still represents 25 percent of our revenue and so remains important to us ... 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 economise.”

The AP instituted a new rate structure about a year ago, which led to several newspapers to end their agreements with the news service, according to E&P.

According to the memo, out last Thursday and posted by E&P Friday: “Given these economic times, AP, like most companies, is being prudent about hiring and spending. This week, we instituted a company-wide strategic hiring freeze, which we will re-examine regularly. In addition, we are looking at spending on every level. We'll keep you updated with any additional developments.”

For more on the memo, visit Editorandpublisher.com.