The hollowing out of Vice and BuzzFeed marks the end of the digital media revolution

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new york
CNN
—

The digital media revolution is over.

Its two leaders, Vice Media and BuzzFeed, are in a frenzied exit, surrendering much of their online empires as they seek to protect what remains of their core assets. The former digital media darlings who once threatened to upend entire industries and usher in a new era of news distribution and monetization are now simply trying to survive in whatever form they can.

As they retreat, the large newsroom once filled with rows of journalists now turns off its lights and closes its doors. BuzzFeed, already slimmed down after several waves of layoffs, announced this week that it will cut an additional 16% of its workforce in a “planned strategic restructuring” to cut costs. And Vice Media announced Thursday that it would be cutting jobs. hundreds of In order to stop publishing on its own website and pivot to a studio-like business, the staff was also significantly reduced.

“It’s shocking to see a group of journalists who have had such a profound impact on the world lose their jobs in this way,” one junior media executive told me about the ugly situation.

All digital publishers have struggled in recent years to weather tough industry headwinds brought about by a softening advertising market dominated by big tech companies and a sharp decline in referral traffic. Needless to say, the immediate threat of artificial intelligence is also posed by Big Tech giants.

Both Vice Media and BuzzFeed are industry-wide alter egos and have served as two of the most high-profile trailblazers, paving the (brief) path for other digital-first startups. At some point, these media outlets made splashy hires and threatened further disruption while creating fear in their traditional media competitors, each worth billions of dollars.

They’re having a hard time keeping their heads above water right now.

As we know, the demise of Vice Media is a particularly hard pill to swallow. Hours before CEO Bruce Dixon handed over the memo, store employees who had been told they would receive severance pay if they were hit by a knife said something was wrong. I heard it. Prior to the announcement, the atmosphere within Vice Media was tense.

As rumors spread about the outlet’s fate, staff were struggling to work, with one staffer saying it was “like watching a violinist play inside the sinking Titanic”.

Then, late at 3 p.m. ET, the NYT’s Benjamin Marin confirmed the worst fears, reporting that mass layoffs were underway. Finally, at approximately 5 p.m. ET, Mr. Dixon formally informed employees of the intolerable decisions and fundamental changes the company would make under new private equity owners led by Fortress Investment Group. .

Dixon said in the memo that Vice Media has determined that distributing digital content in-house is “no longer cost-effective.” Instead, “as we move fully to a studio model, we will consider partnering with established media companies to distribute our digital content, including news, on their global platforms.” Stated. There’s no word on who that partner is.

The company also needs to decide what to do with Refinery29 and the motherboard. Dixon said Vice Media was in “advanced negotiations” to sell the former. And he’s heard there’s a lot of discussion going on about what to do with the motherboard, and one possibility is to create another company that runs a tech-centric vertical motherboard, like the Sports Illustrated model. It is conceivable that the company could license the product to a number of companies.

According to information I gathered Thursday, executives are unsure whether the content the site has published over the years will remain online.

Meanwhile, hundreds of remaining staff are left wondering their fate, having to suffer through the weekend to find out if they will lose their jobs. It’s a cruel move to say the least. In any case, the digital publishing staff has largely already accepted their fate.

“I think most of us have seen the writing on the wall. Lifeboats are in short supply and it is highly unlikely that key digital news staff will be invited onto lifeboats. “This employee likened Vice Media to a sinking ship. Titanic told me.

It’s hard to imagine brands ever being the same in the wake of mass layoffs. Absolutely not. The internet is littered with zombie publications with familiar names, but they’ve lost the soul they once had, becoming mere husks of their former vibrant selves.

Remarkably, when Vice Media staffers received the shocking news on Thursday, co-founder Shane Smith, who put on a salesman’s bravado and made more than $100 million from the outlet. was nowhere to be found.