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Vice Media will no longer publish content on its website, and the former digital media darling joined BuzzFeed this week in making additional job cuts.
Vice also plans to lay off hundreds of employees as it moves to a studio-only business model, CEO Bruce Dixon said in a memo delivered late Thursday, the Associated Press reported. He reportedly spoke to an employee inside. Dixon told staff that Refinery 29, a lifestyle site for women, will continue to operate and Vice will continue to discuss selling the business.
Deputy Filed for bankruptcy last May It was later sold for $350 million to a consortium led by private equity firm Fortress Investment Group, which was listed as its largest creditor. Fortress is majority-owned by Abu Dhabi-based sovereign wealth fund Mubadala Investment.
Vice did not respond to a request for comment.
Dixon’s message highlights the stunning fall of a media company that was once praised for its reporting and copied by industry giants eager to reach younger audiences. The magazine, which started as an alternative music and culture magazine in Montreal during its heyday in the 1990s, has reached a market valuation of $5.7 billion, but has since suffered from leadership conflicts, a sharp slowdown in online ad spending, and a decline in ad spending. Difficulties began to pile up, including a drop in traffic due to soaring prices. social media platform.
What is a warning notice?
In New York state, private companies with 50 or more employees are legally required to give at least 90 days’ notice before mass layoffs. This is defined as involving 25 or more full-time employees, or at least 250 full-time employees, representing more than one-third of her employees over a six-month period. .
The Worker Adjustment and Retraining Notification Act also requires employers to provide advance warning before a factory is temporarily or permanently closed or operations are relocated.
This week, BuzzFeed announced it would sell its startup complex, known for its pop culture coverage, and cut its staff by an additional 16%, already reducing its workforce through multiple rounds of layoffs. Vice and BuzzFeed are among the many digital outlets to announce layoffs this year. Messenger abruptly shut down in January, and Business Insider cut its staff by 8%.
Traditional media is also shrinking its position, with most major news publishers facing a sharp decline in online traffic as online users turn to alternative media such as TikTok and Instagram. The list of media companies that have announced layoffs in the past year also includes Condé Nast. Los Angeles Times. Paramount Global, owner of CBS News. Vox Media; The Wall Street Journal; and The Washington Post.
Media companies have announced more than 21,000 layoffs in 2023, an increase of 467% from the previous year, according to outplacement firm Challenger, Gray & Christmas. Of those job cuts, approximately 3,100 were in digital, broadcast and print news.
—The Associated Press contributed to this report.
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