The Washington Post has laid off 54 employees across its publishing tech division, Arc XP, as the company moves to create a more sustainable business model. Despite a decade of consistent customer base growth, Arc XP has struggled with profitability, prompting these workforce reductions.

The layoffs affected roles in sales, engineering, marketing, technology, and product functions, reducing Arc XP’s workforce from approximately 300 employees. Arc XP President Matt Monahan communicated the decision to staff, stating that the cuts are part of a broader plan to align the company with a future vision that is both “ambitious and achievable.” This vision includes investing in AI-powered tools to better serve the platform’s over 2,500 clients, many of whom are local and national media publishers outside the U.S.

Arc XP was launched in 2015 with the backing of Washington Post owner Jeff Bezos as a way to diversify revenue streams in the digital era. Although the platform expanded its functionality during the pandemic, it eventually refocused on serving primarily media firms and rebranded as Arc XP in 2021. Despite discussions of selling Arc XP to generate cash for The Post’s core operations, a sale has not materialized.

These layoffs are part of a broader effort by The Washington Post to streamline operations amid a challenging advertising environment. The company previously avoided layoffs by offering voluntary buyouts to over 200 employees. However, CEO Will Lewis revealed in May that The Post lost $77 million in the past year, with total revenues declining by 12% since 2021.

As the media landscape continues to evolve, Arc XP aims to enhance its revenue strategy by incorporating automation and technology to improve client onboarding and training, reducing reliance on human consultation.