NEW YORK — In a memo to staff on Thursday, Vice Media’s CEO revealed plans to lay off several hundred employees and discontinue publishing material on its Vice.com website. This decision comes after the company faced financial turmoil, including filing for bankruptcy last year and subsequently being sold for $350 million.
Selling Refinery 29 Business
CEO Bruce Dixon also announced Vice’s intentions to sell its Refinery 29 publishing business as part of their strategic restructuring. This move is indicative of the challenges faced by the media industry as a whole, with digital sites like the Messenger, BuzzFeed News, and Jezebel ceasing operations, alongside job cuts at traditional outlets like the Los Angeles Times, Washington Post, and Wall Street Journal.
Financial Struggles and Restructuring
Once valued at $5.7 billion in 2017, Vice’s evolution from a trailblazing media company aimed at a younger demographic to its current financial predicament reflects seismic shifts in the industry. The company will be notifying affected employees early next week, with reports suggesting that around 900 staff members are currently employed at Vice.
Transition to Social Channels
Moving forward, Vice will be reallocating resources towards its social channels, signaling a departure from its previous digital distribution strategy. CEO Bruce Dixon emphasized the need for long-term creative and financial success, stating that the changes are essential to position the company for the future.
Embracing a Studio Model
In line with its new direction, Vice will be adopting a studio model to streamline operations. This transition follows the cancellation of “Vice News Tonight” and previous restructuring efforts, demonstrating Vice’s commitment to adapting to a rapidly evolving media landscape.
As Vice Media navigates these significant changes, the company is poised to redefine its approach and solidify its position in an increasingly competitive industry.