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WASHINGTON (AFP) – Vice, a dynamic and fast-growing digital media company with a wide following among young readers, announced Thursday that it will cease publishing on its flagship website and cut hundreds of jobs.
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Vice, known for its millennial-focused, cutting-edge news and lifestyle content, was a rising star among a new breed of digital media companies, but it was struggling with declining advertising revenue.
The move is the latest somber news for the beleaguered American media industry, where BuzzFeed News closed its doors after 12 years in business last year.
“This strategic shift requires us to realign resources and streamline operations across Vice,” Vice Media Group CEO Bruce Dixon told employees. A copy was posted online by several Vice reporters.
“Unfortunately, this means reducing our workforce and eliminating hundreds of positions.”
“It’s no longer cost-effective to deliver digital content the way we used to,” Dixon said.
Going forward, the company will “consider partnering with established media companies to distribute our digital content, including news, on their global platforms as we fully transition to a studio model,” he added.
Employees affected by the layoffs will be notified early next week.
This marks a dramatic fall for the brash upstart media company, which six years ago was worth a staggering $5.7 billion but ultimately filed for bankruptcy last May.
The following month, a group of creditors led by Fortress Investment Group acquired the company in related stock for $350 million.
Many digital media startups haven’t been able to translate brand enthusiasm into the kind of revenue investors expected.
Last year’s slowdown in the online advertising market and tightening credit conditions made things increasingly difficult for relatively young media companies like Vice.
Founded in 1994 as a Canadian magazine, Vice has grown into an online media group with news websites and television operations.
The production cultivated a “bad boy” image and its success, coupled with a younger audience, attracted the attention of the media world.
However, co-founder Shane Smith resigned as chief executive in 2018 after the group was tarnished by reports of workplace harassment, which led to the sacking of three employees.
© 2024 AFP
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