Vice Media will cease publishing on its flagship web site, Vice.com, and lay off a number of hundred workers because the digital media firm grapples with monetary challenges, CEO Bruce Dixon revealed in a company-wide memo on Thursday,
Dixon outlined the plans to transition Vice Media from a self-publishing entity to a “studio model” that can produce and promote content material to different media shops.
“Several hundred” workers will probably be affected by the layoffs. Dixon emphasised that Vice will intensify its presence on social media channels and pursue partnerships with established media firms for broader content material distribution.
“We create and produce outstanding original content true to the Vice brand,” Dixon said. “However, it is no longer cost-effective for us to distribute our digital content the way we have done previously.”
Refinery29, acquired by Vice Media in 2019, will reportedly proceed to function as an unbiased entity, specializing in its digital publishing and social-first content material. The corporate is at the moment in superior talks to promote this department of the enterprise, with updates anticipated within the coming weeks, in response to Variety.
“This decision was not made lightly,” Dixon wrote, acknowledging the numerous influence on employees. Affected workers are to be notified of the subsequent steps early within the following week.
Learn Dixon’s full memo obtained by Selection:
As we navigate the ever-evolving enterprise panorama, we have to adapt and greatest align our methods to be extra aggressive in the long run. After cautious consideration and dialogue with the board, now we have determined to make some basic adjustments to our strategic imaginative and prescient at Vice.
We create and produce excellent authentic content material true to the Vice model. Nevertheless, it’s now not cost-effective for us to distribute our digital content material the best way now we have accomplished beforehand. Shifting ahead, we’ll look to associate with established media firms to distribute our digital content material, together with information, on their world platforms, as we absolutely transition to a studio mannequin. As a part of this shift, we’ll now not publish content material on vice.com, as an alternative placing extra emphasis on our social channels as we speed up our discussions with companions to take our content material to the place will probably be seen most broadly.
Individually, Refinery 29 will proceed to function as a standalone diversified digital publishing enterprise, creating participating, social first content material. As you understand, we’re in superior discussions to promote this enterprise, and we’re persevering with with that course of. We count on to announce extra on that within the coming weeks.
With this strategic shift comes the necessity to realign our assets and streamline our general operations at Vice. Regrettably, which means we will probably be lowering our workforce, eliminating a number of hundred positions. This choice was not made evenly, and I perceive the numerous influence it should have on these affected. Workers who will probably be affected will notified about subsequent steps early subsequent week, in line with native legal guidelines and practices.
I do know that saying goodbye to our valued colleagues is troublesome and feels overwhelming, however that is the most effective path ahead for Vice as we place the corporate for long-term artistic and monetary success. Our monetary companions are supportive and have agreed to speculate on this working mannequin going ahead. We are going to emerge stronger and extra resilient as we embark on this new section of our journey.
Thanks on your continued dedication to Vice and assist throughout this time of transition. Collectively, I’m assured that we are going to overcome any challenges and obtain our shared objectives.
The shift comes amidst the corporate’s relocation of its strategic focus underneath new non-public fairness possession.
Final yr, Soros purchased Vice Media in a transaction valued at $350 million. The Gateway Pundit reported final yr that the far-left Vice Media filed for Chapter 11 chapter as a way to allow a sale to Soros Fund Administration.
It was reported the corporate, as soon as valued at $5.7 billion, was struggling to discover a purchaser.
Vice filed Chapter 11 chapter within the US Chapter Court docket for the Southern District of New York to allow the sale to Soros Fund Administration.
“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.” – in response to CNBC.
