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CEO Bruce Dixon revealed in a company-wide memo Thursday that Vice Media will stop publishing on its flagship web site Vice.com and lay off a number of hundred staff because the digital media firm grapples with monetary challenges.
Dixon outlined a plan to rework Vice Media from a self-publishing entity to a “studio mannequin” that will produce and promote content material to different media retailers.
The layoffs will have an effect on “a number of hundred” staff. Dixon emphasised that Vice would improve its presence on social media channels and accomplice with established media firms for broader content material distribution.
“We create and produce nice authentic content material according to the Vice model,” Dixon stated. “Nonetheless, it’s not cost-effective for us to distribute our digital content material as earlier than.”
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. In keeping with Selection, the corporate is at the moment in superior talks to promote this department of the enterprise, and an replace is predicted within the coming weeks.
“This determination was not taken flippantly,” Dixon wrote, acknowledging the numerous affect on staff. Affected staff will probably be notified of subsequent steps early subsequent week.
Learn Dixon's full memo, obtained by Selection:
As we transfer ahead in a consistently evolving enterprise panorama, we have to adapt and finest align our methods to be extra aggressive in the long run. After cautious consideration and dialogue with the Board, we have now determined to make some basic modifications to our strategic imaginative and prescient at Vice.
We create and produce nice authentic content material according to the Vice model. Nonetheless, it’s not cost-effective for us to distribute our digital content material prefer it was. Going ahead, we are going to look to accomplice with established media firms to distribute our digital content material, together with information, throughout their international platforms as we totally transition to a studio mannequin. As a part of this alteration, we are going to not publish content material on vice.com, as an alternative inserting a larger emphasis on our social channels as we speed up our discussions with companions to get our content material the place it must be. will probably be seen most generally.
Individually, Refinery29 will proceed to function as a standalone various digital publishing enterprise, creating partaking, social first content material. As , we’re in superior discussions to promote this enterprise, and we’re persevering with that course of. We anticipate to announce extra on this within the coming weeks.
With this strategic shift comes the necessity to reallocate our sources and streamline our total operations at Vice. Sadly, this implies we will probably be lowering our workforce, eliminating a number of hundred positions. This determination was not taken flippantly, and I perceive that it’s going to have a major affect on these affected. Staff who’re affected will probably be notified of subsequent steps early subsequent week, according to native legal guidelines and practices.
I do know it's troublesome and feels heavy to say goodbye to our valued colleagues, however that is one of the best 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. As we start this new section of our journey, we are going to emerge stronger and extra resilient.
Thanks to your continued dedication and assist of Vice throughout this time of change. I’m assured that collectively we are going to overcome any challenges and obtain our frequent targets.
The change comes as the corporate shifts its strategic focus beneath new personal fairness possession.
Final yr, Soros bought Vice Media in a transaction price $350 million. Gateway Pundit reported final yr that far-left Vice Media had filed for Chapter 11 chapter to allow a sale to Soros Fund Administration.
It was reported that the corporate, as soon as valued at $5.7 billion, was struggling to discover a purchaser.
Vice filed Chapter 11 chapter within the U.S. Chapter Courtroom for the Southern District of New York to allow the sale to Soros Fund Administration.
“The consortium's bid features a dedication of $20 million in money to allow Vice's operations to proceed in the course of the sale course of. The corporate stated it’s anticipated to be completed inside two to 3 months. In keeping with CNBC.