Vice Media disclosed plans to discontinue operations on Vice.com and reduce its staff significantly. The move comes as the company redirects its focus towards social media platforms.
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VENICE, CA - FEBRUARY 01: Vice Media offices display the Vice logo at dusk on February 1, 2019 in Venice, California. Vice Media announced it is cutting 250 jobs globally, about ten percent of its workforce.
Shifting Strategy
In a memo addressed to employees, Vice Media CEO Bruce Dixon announced significant layoffs, signaling a departure from Vice.com after nearly three decades. The company plans to transition its content distribution strategy towards social platforms, citing cost-effectiveness concerns.
Dixon stated that Vice will cease publishing stories on its website and intends to collaborate with established media entities to distribute digital content.
The decision reflects Vice's response to industry-wide challenges, including declining advertising revenue and shifting audience engagement patterns. In pursuit of new revenue streams, Vice will explore options such as content licensing while prioritizing social platforms with broader reach.
Vice writers started archiving their content following an anonymous tip indicating a potential shutdown of the website. The fate of Vice.com remains uncertain; it's unclear whether the site will be completely shut down or if it will remain online but inactive.
Dixon confirmed that the layoffs would impact "several hundred" employees. He also mentioned that Refinery29, another property owned by Vice Media, will continue operating independently as a diversified digital publishing entity. However, the company is exploring options to divest Refinery29.
Looking Back
Vice's publishing journey began in 1996 at Viceland.com, transitioning to Vice.com in 2011 following its merger with the video-centric VBS.tv experiment and the acquisition of the Vice.com domain. However, the company's trajectory has been marred by uncertainty since last year.
Dixon and Lokhandwala assumed the roles of co-CEOs at Vice in February, succeeding Nancy Dubuc. During their tenure, the company underwent significant changes, including staff layoffs, program cancellations, and a bankruptcy sale.
In July, Vice was acquired by a consortium spearheaded by Fortress Investment Group, Soros Fund Management, and Monroe Capital. The digital media sector has encountered significant challenges over the past year, leading to widespread layoffs across the industry.
Following a Chapter 11 bankruptcy filing, the struggling media entity was acquired by a consortium of its creditors. In November 2023, Vice implemented layoffs, shedding numerous employees, and axed several of its shows.
Also Read: Tech Layoffs Signal a Broader Decline of 'Thinking' Jobs, Expert Says
The Writers Guild of America East responded to the layoff announcement from Vice, expressing little surprise at the company's reliance on layoffs as a solution.
The Guild highlighted the substantial impact of the layoffs, emphasizing the widespread dismantling of teams and the resulting loss of numerous jobs.
Additionally, the WGA East criticized Vice's handling of the announcement, deeming it as typically disorganized and reflective of the company's ongoing disregard for its employees.
Related Article: Vice Media Prepares to File for Bankruptcy
