Layoffs Hit Tech Arm of Jeff Bezos’ Washington Post, Angering Union

Arc XP, the tool and software business of Jeff Bezos’ Washington Post, is laying off workers, with several top staffing members being informed that their jobs will be eliminated in the coming weeks.

The cuts come after the Post previously considered a sale of the software business, which has a staff of 250 around the world, providing apps and software services to other businesses.

Via Semafor:

Last year, the Post declined offers to sell Arc XP, the company’s in house publishing tool and software business, saying it would instead invest $50 million in the business in 2023. But on August 22, the paper told several top marketing staffers, program managers, and product designers at Arc XP that the Post would be eliminating their roles in the coming weeks.

The move displeased staff, who have been furious with recurring layoffs at the paper over the past year. In a statement, the company’s union said it was frustrated with the cuts, saying the paper did not give staffers an explanation for why their roles were being eliminated. The union added that the cuts contradicted the paper’s previous claim that there would be no further layoffs this year.

“We are deeply frustrated to see the company continuing this harmful and ineffectual practice — which has been shown again and again to erode morale and productivity without actually saving money,” the Guild said in a statement to Semafor.

The Washington Post relies on subscription revenue from its readers, but its subscription numbers have dropped from 3 million to 2.5 million, leading to cuts to the editorial team earlier this year. Per Semafor, the Bezos-owned paper is is on track to lose roughly $100 million this year.

Arc XP continues to generate revenue — a reported $40-50 million in recurring revenue, with over 100 clients.

Allum Bokhari is the senior technology correspondent at Breitbart News. He is the author of #DELETED: Big Tech’s Battle to Erase the Trump Movement and Steal The Election. Follow him on Twitter @AllumBokhari.