Vice Media is preparing to lay off several hundred employees and stop publishing material on its website, a company-wide memo announced on Thursday. The upstart media company, which went from a multi-billion-dollar valuation in 2017 to filing for bankruptcy last year, is now the latest casualty in a series of media industry cutbacks since the start of the year.
“After careful consideration and discussion with the board, we have decided to make some fundamental changes to our strategic vision at Vice,” company CEO Bruce Dixon wrote on Tuesday. “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.”
Dixon further stated that Vice will shift focus to its studio and social media content, which means shuttering the once-popular vice.com and “reducing our workforce [by] eliminating several hundred positions.” Employees affected by the layoff will be notified about next steps beginning next week, and those who remain will now work to find a buyer to “take the content where it will be viewed most broadly.”
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Vice is also in the process of selling off its female-oriented affiliate site Refinery.com, which it acquired in 2019.
The sudden reversal in Vice’s fortunes marks one of the biggest media downfalls in recent industry history. In 2017, Vice was seen as a leader in independent journalism, earning a valuation of $5.7 billion. Since then, poor management, changes in ownership, mounting debt, and a series of sexual harassment allegations have dragged the organization downwards, until it finally descended into bankruptcy last year.
A consortium led by Fortress Investment Group and globalist billionaire George Soros acquired the company for $350 million after its bankruptcy filing last year.
With its website shuttered, Vice now joins a litany of other media outlets that have experienced major layoffs and cutbacks. Digital sites like The Messenger, BuzzFeed News, and Jezebel have all shut down within the last year, and legacy publications like the Los Angeles Times, Washington Post, Wall Street Journal saw significant staffing reductions.
Related: News Startup The Messenger Shuts Down After Just 8 Months Amid Media Industry Layoffs
The full statement from CEO Bruce Dixon can be read below:
Dear Vice Team,
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.
Bruce
Connor Walcott is a staff writer for Valuetainment.com. Follow Connor on X and look for him on VT’s “The Unusual Suspects.”
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