McClatchy Media is cutting journalists at several California newspapers while building a new artificial intelligence operation that could dramatically change what its newsrooms produce.

The newspaper giant laid off dozens of reporters nationwide last week, then added three editors to its AI-powered Content Innovation Lab.

The company’s AI strategy was already being pushed internally months before the latest cuts.

During a contentious May virtual town hall, CEO Tony Hunter delivered a blunt pitch for the company’s future.

“We have a company-wide effort to agentify the entire enterprise,” Hunter said in a recording obtained by Straight Arrow News.

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