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 the 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 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.”
Refinery29, acquired by Vice Media in 2019, will reportedly continue to operate as an independent entity, focusing on its digital publishing and social-first content. 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 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 shift comes amidst the company’s relocation of its strategic focus under new private equity ownership.
Last year, Soros bought Vice Media in a transaction valued at $350 million. The Gateway Pundit reported last year that the far-left Vice Media filed for Chapter 11 bankruptcy in order to enable a sale to Soros Fund Management.
It was reported the company, once valued at $5.7 billion, was struggling to find a buyer.
Vice filed Chapter 11 bankruptcy in the US Bankruptcy Court for the Southern District of New York to enable the sale to Soros Fund Management.
“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.
This story originally appeared on TheGateWayPundit
