Vice Media will stop publishing on its flagship website, Vice.com, and lay off several hundred employees as the digital media company faces financial challenges, CEO Bruce Dixon revealed in a company-wide memo on Thursday.
Dixon outlined plans to transform Vice Media from a self-publishing entity into a “studio model” that produces and sells content to other media outlets.
“Several hundred” employees will be affected by the layoffs. Dixon confirmed that Vice will intensify its presence on social media channels and will seek to establish partnerships with existing media companies to distribute content more widely.
“We create and produce great original content that aligns with the Vice brand,” Dixon said. “However, distributing our digital content the way we did previously is no longer cost effective for us.”
Refinery29, which was acquired by Vice Media in 2019, will reportedly continue to operate as an independent entity, focusing on digital publishing and social content first. The company is currently in advanced talks to sell this branch of the business, with updates expected in the coming weeks, according to Variety.
“This decision was not made lightly,” Dixon wrote, acknowledging the significant impact on employees. Affected employees should be notified of next steps early the following week.
Read Dixon's full memo obtained by Variety:
As we navigate a constantly evolving business landscape, we need to adapt and better align our strategies to be more competitive in the long term. After careful consideration and discussion with the Board of Directors, we have decided to make some fundamental changes to our strategic vision at Vice.
We create and produce premium original content that aligns with the Vice brand. However, distributing our digital content the way we did previously is no longer cost effective for us. Going forward, we will look to partner with established media companies to distribute our digital content, including news, on their global platforms, as we transition fully to a studio model. As part of this shift, we will no longer publish content on Vice.com, and instead will focus more on our social channels as we accelerate our discussions with partners to take our content where it will be viewed more widely.
Separately, Refinery 29 will continue to operate as a diversified, independent digital publishing company, creating engaging social-first content. As you know, we are in advanced discussions to sell this business, and we are continuing that process. We expect to announce more about this in the coming weeks.
With this strategic shift comes the need to realign our resources and streamline our overall operations at Vice. Unfortunately, this means we will be reducing our workforce, eliminating several hundred jobs. This decision was not made lightly, and I understand the significant impact it will have on those affected. Affected employees will be notified of next steps early next week, consistent with local laws and practices.
I know saying goodbye to our valued colleagues is difficult and feels overwhelming, but this is the best path forward for Vice as we work to enable the company for long-term creative and financial success. Our financial partners are supportive and have agreed to invest in this operating model for the future. We will emerge stronger and more resilient as we begin this new phase of our journey.
Thank you for your continued dedication to Vice and your support during this transition period. I am confident that together we will overcome any challenges and achieve our common goals.
The shift comes as the company shifts its strategic focus under new private equity ownership.
Last year, Soros bought Vice Media in a deal worth $350 million. The Gateway Pundit reported last year that far-left company Vice Media filed for Chapter 11 bankruptcy in order to enable a sale to Soros Fund Management.
The company, valued at $5.7 billion, was reportedly struggling to find a buyer.
Weiss filed Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York to enable the sale to Soros Fund Management.
“The consortium’s offer includes a commitment of $20 million in cash to enable Vice’s operations to continue throughout the sale process. It is expected to be completed within two to three months,” the company said. – according to CNBC.
