Vice Media will stop publishing on its flagship website, Vice.com, and lay off several hundred employees as the digital media company grapples with financial challenges, CEO Bruce Dixon revealed in a company-wide memo on Thursday,
Dixon outlined plans to transition Vice Media from a self-publishing entity to a “studio model” that will produce and sell content to other media outlets.
“Several hundred” employees will be affected by the layoffs. Dixon emphasized that Vice will ramp up its presence on social media channels and pursue partnerships with established media companies for broader content distribution.
“We create and produce exceptional original content true to the Vice brand,” Dixon said. “However, it is no longer convenient for us to distribute our digital content as we previously did.”
Refinery29, acquired by Vice Media in 2019, will reportedly continue to operate as an independent entity, focusing on digital publishing and social-first content. According to Variety, the company is currently in advanced negotiations to sell this business unit, with updates expected in the coming weeks.
“This decision was not made lightly,” Dixon wrote, acknowledging the significant impact on staff. Affected employees should be informed of next steps early next week.
Read Dixon’s full memo obtained by Variety:
As we navigate an ever-changing business landscape, we must better adapt and 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 for Vice.
We create and produce exceptional original content true to the Vice brand. However, it is no longer convenient for us to distribute our digital content as we previously did. Going forward, we will look to partner with established media companies to distribute our digital content, including news, across their global platforms as we fully transition to a studio model. As part of this change, we will no longer publish content on vice.com, instead placing greater emphasis on our social channels as we accelerate our discussions with partners to get our content where it will be viewed more widely.
Separately, Refinery 29 will continue to operate as a diverse, standalone digital publishing business, creating engaging, social-first content. As you know, we are in advanced negotiations to sell this business and are continuing with this 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 reduce 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, in line 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 position the company for long-term creative and financial success. Our financial partners are supportive and have agreed to invest in this operating model in the future. 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 transition period. Together, I am confident that we will overcome any challenges and achieve our shared goals.
The change comes amid the company’s shift of its strategic focus under new private equity ownership.
Last year Soros bought Vice Media in a transaction worth $350 million. The Gateway Pundit reported last year that far-left Vice Media filed for Chapter 11 bankruptcy to enable a sale to Soros Fund Management.
It was reported that the company, once valued at $5.7 billion, was struggling to find a buyer.
Vice filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the Southern District of New York to allow the sale to Soros Fund Management.
“The consortium’s offer includes a commitment of $20 million in cash to allow Vice’s operations to continue throughout the sale process. Completion is expected within two to three months, the company said. – according to CNBC.