Vice Media Group was on the verge of filing for bankruptcy last year.
Vice Media Group CEO Bruce Dixon announced in a memo that the company will stop publishing content on its website and plans to lay off hundreds of employees next week. He cited cost-effectiveness as the main reason for the major move by the U.S.-Canadian digital media company.
“We create and produce great original content that is true to the Vice brand. However, it is no longer cost-effective for us to distribute digital content the way we used to,” he said.
He revealed that the company is transitioning to a “studio model” and as part of this change, no content will be published on vice.com. He added: “Going forward, as we transition fully to a studio model, we will look to partner with established media companies to distribute our digital content, including news, across their global platforms.”
“As part of this transition, we will no longer be Vice.cominstead placing an increased emphasis on our social channels as we accelerate discussions with our partners to bring our content to the widest possible audience,” he continued.
Speaking about Refinery29, another media brand owned by Vice Media, Dixon revealed that the brand will “operate as an independent diversified digital publishing business, creating engaging, social-first content”.
He said company leaders “are in advanced discussions about selling the business and we are continuing that process.”
“This decision was not taken lightly,” Dixon said of the layoffs.
“With this strategic shift (to a studio model), we need to realign our resources and streamline Vice’s overall operations. Unfortunately, this means we will reduce our headcount and eliminate hundreds of positions. This The decision was not taken lightly and I understand that this will have a significant impact on those affected,” he added.
Dixon said employees who will be laid off will be notified in advance: “Affected employees will be informed of next steps early next week in accordance with local laws and practices.”
It’s important to note that news of the layoffs came less than a year later. Company rescued from bankruptcy. Vice Media Group was on the verge of filing for bankruptcy last May and was looking for a buyer for the company to avoid a bankruptcy declaration.
