Vice Media CEO Bruce Dixon announced in a company-wide memo on Thursday that the digital media company will cease publishing on its main website, Vice.com, and reduce its workforce by laying off hundreds of employees.
Dixon revealed plans to shift Vice Media from a self-publishing platform to a “studio model,” focusing on creating and distributing content to external media channels.
“Several hundred” employees will be affected by the layoffs. Dixon emphasized that Vice will intensify its presence on social media channels and pursue partnerships with established media companies for broader content distribution.
“We create and produce outstanding original content true to the Vice brand,” Dixon stated. “However, it is no longer cost-effective for us to distribute our digital content the way we have done previously.”
According to Variety, Refinery29, which was bought by Vice Media in 2019, is set to remain an independent entity with a focus on its digital publishing and social-first content. The company is in advanced discussions regarding the sale of this division, and further details are anticipated in the upcoming weeks.
“This decision was not made lightly,” Dixon wrote, acknowledging the significant impact on staff. Affected employees are to be notified of the next steps early in the following week.
Read Dixon’s full memo obtained by Variety:
As we navigate the ever-evolving business landscape, we need to adapt and best align our strategies to be more competitive in the long term. After careful consideration and discussion with the board, we have decided to make some fundamental changes to our strategic vision at Vice.
We create and produce outstanding original content true to the Vice brand. However, it is no longer cost-effective for us to distribute our digital content the way we have done previously. Moving forward, we will look to partner with established media companies to distribute our digital content, including news, on their global platforms, as we fully transition to a studio model. As part of this shift, we will no longer publish content on vice.com, instead putting more emphasis on our social channels as we accelerate our discussions with partners to take our content to where it will be viewed most broadly.
Separately, Refinery 29 will continue to operate as a standalone diversified digital publishing business, creating engaging, social first content. As you know, we are in advanced discussions to sell this business, and we are continuing with that process. We expect to announce more on that in the coming weeks.
With this strategic shift comes the need to realign our resources and streamline our overall operations at Vice. Regrettably, this means that we will be reducing our workforce, eliminating several hundred positions. This decision was not made lightly, and I understand the significant impact it will have on those affected. Employees who will be affected will notified about next steps early next week, consistent with local laws and practices.
I know that saying goodbye to our valued colleagues is difficult and feels overwhelming, but this is the best path forward for Vice as we position the company for long-term creative and financial success. Our financial partners are supportive and have agreed to invest in this operating model going forward. We will emerge stronger and more resilient as we embark on this new phase of our journey.
Thank you for your continued dedication to Vice and support during this time of transition. Together, I am confident that we will overcome any challenges and achieve our shared goals.
The change in direction coincides with the company’s shift in strategic priorities following its acquisition by new private equity owners.
Soros acquired Vice Media for $350 million last year, with reports indicating that the left-leaning media company filed for Chapter 11 bankruptcy to facilitate the sale to Soros Fund Management.
Despite once being valued at $5.7 billion, Vice faced challenges in finding a buyer, leading to the bankruptcy filing in the US Bankruptcy Court for the Southern District of New York.
“The consortium’s bid includes a commitment of $20 million in cash to enable Vice’s operations to continue throughout the sale process. It is expected to conclude within two to three months, the company said.” – according to CNBC.
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