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In a Feb. 22 memo to staff, Vice Media CEO Bruce Dixon announced plans to lay off hundreds of employees and stop publishing on the Vice.com website. The company, which faced bankruptcy last year and was subsequently sold to a consortium led by Fortress Investment Group for $350 million, is also considering selling Refinery29’s publishing business.
“This strategic shift (movement to a studio model) requires us to realign our resources and streamline Vice’s overall operations. Unfortunately, this means reducing our workforce and eliminating hundreds of positions. This decision was not made lightly. “I understand that this will have a significant impact on the affected employees. As is our practice, we will notify employees of our next steps early next week,” Dixon said in a letter to employees.
Vice’s decision reflects ongoing financial challenges in the media industry. Over the past year, digital sites such as Messenger, Buzzfeed News and Jezebel have shut down, while traditional media outlets such as the Los Angeles Times, Washington Post and Wall Street Journal have suffered layoffs, according to The Associated Press. The report points out.
Changes in distribution strategy
Dixon acknowledged that it was difficult to say goodbye to his colleagues, but said change was necessary for Vice’s long-term creative and financial success. He said current delivery methods for digital content, including news, are no longer cost-effective. As a result, Vice plans to put even more emphasis on its social channels and explore alternative content distribution methods.
As part of a strategic shift, Vice is moving to a studio model. The move follows the cancellation of its TV show “Vice News Tonight” and a series of layoffs before the company filed for bankruptcy protection last year.
“Going forward, as we fully transition to a studio model, we will be looking to partner with established media companies to distribute our digital content, including news, on their global platforms. As part of this transition, As a company, we will no longer publish content on Vice Media.com, but as we accelerate discussions with partners to bring our content to the places where it is most widely viewed, we will continue to publish more content on our social channels. Dixon said in a staff communication.
“Separately, Refinery 29 will continue to operate as an independent, diversified digital publishing business, producing engaging, social-first content. As you are aware, we are currently in discussions to sell this business. “We are in the process of doing so and will continue that process. We will make further announcements on that in the coming weeks.”
reaction to news
Similar reactions to this news were seen from staff and netizens on social media. Vice reporter Anna Marlan confirmed the news and shared Dixon’s message on microblogging site X (formerly Twitter), adding: Thank you to everyone for your kind words today, and for listening to me and trusting me as a reporter. Working on Vice was…very interesting and I’ll definitely look back on it. I think today’s uproar and the pursuit by media reporters has led to greater transparency much more quickly than the company would have otherwise. Thank you everyone. ”
X user and POW Mag editor-in-chief Otto von Biz Markey blamed Vice’s decline on private equity meddling. Post: “A few years ago, Vice was valued at $5.7 billion. They published some of the smartest, most interesting, fearless journalism of the past decade. And now private equity is paying it forward. They’re trying to strip out parts and create a bunch of outdated nostalgia meme pages. It’s hard beyond words.”
“No one communicates in real words, TikTok dances, memes passed down from generation to generation like sacred scrolls, and the occasional selfie filled with hidden symbols to feed the algorithm.” I’m looking forward to a future where only the flow is,” he added.
financial background
Vice, a New York-based media company once valued at $5.7 billion in 2017, targeted younger audiences with a dynamic storytelling approach across digital, television, and film mediums.
Dixon did not provide specific details about the layoffs, but said hundreds of employees would be affected and notification was expected early next week. The company currently employs about 900 people, according to the New York Times.
“We know it is difficult and heartbreaking to say goodbye to our valued colleagues, but this is the best path forward for Vice as we aim for long-term creative and financial success. Our financial partners have been supportive and have agreed to invest.We will continue with this operating model.As we embark on this new phase of our journey, we are stronger and more resilient. Thank you for your continued dedication and support to Vice during this time of transition. I am confident that together we can overcome any challenge. We will achieve our goals,” Dixon said.
(With input from AP)
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