As it ceases to publish content on Vice.com, Vice Media intends to eliminate hundreds of workers, per a memo from CEO Bruce Dixon. After declaring bankruptcy in the US in May, the company was acquired by Fortress Investment Group.
Vice intends to “partner with established media companies to distribute our digital content,” according to Mr. Dixon. This year, employment cuts have also been made by media companies like Channel 4, Los Angeles Times, and Business Insider.
“It is no longer cost-effective for us to distribute our digital content the way we have done previously,” Mr. Dixon stated in the memo obtained by the BBC.
“Regrettably, this means that we will be reducing our workforce, eliminating several hundred positions,” he stated. Mr. Dixon stated that the announcement will be made in the upcoming weeks and that the corporation is still selling the business.
Vice previously announced layoffs by ending its flagship TV show before applying for Chapter 11 bankruptcy protection, a process that delays a US company’s responsibilities to its creditors. Vice Media was established in 1994 by Shane Smith, Gavin McInnes, and Suroosh Alvi as a fringe publication known as Voice of Montreal. It now has operations in over 30 nations.
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The business was formerly hailed as one of the leading enterprises destined to upend the old media landscape with edgy, youth-focused content encompassing print, events, music, web, TV, and feature films. It was valued at $5.7 billion (£4.5 billion) in 2017.
Through social media sites like Facebook and Instagram, millions of younger people were expected to be drawn to Vice.
A Vice journalist accompanied the terrorist organization in Syria to record a documentary titled “My Journey Inside the Islamic State,” which was produced by the company. Vice also traveled to North Korea as part of a “sports diplomacy” mission with basketball player Dennis Rodman and the Harlem Globetrotters.
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Actor Sean Penn’s film Volodymyr Zelensky, the president of Ukraine, and films about controversial influencer Andrew Tate were among the more recent releases. Nevertheless, the business has had trouble turning a profit and its revenues have stagnated for a while. Vice’s attempt to merge and go public likewise fell down.
What Vice News’ Top Editor Talks With Staff
Vice Media CEO Bruce Dixon acknowledged that “several hundred” employees would be laid off, and that “we will no longer publish content on vice.com” as the company shifts to a “studio model” of selling content to other channels.
“Our website and our work being pulled down would be completely reprehensible,” he said to staff members. “I cannot even understand any business reasons why you would do something like that.”
Visser informed colleagues that a plan he submitted to restructure the newsroom was effectively rejected by management, and that, although it is already March, he still does not have a budget for the year. Staff spoke with Visser about the status of their next paycheck and whether the corporation would disconnect their Vice laptops. “I don’t know more than you guys besides being able to read faces and notice who is not replying to my messages,” Visser went on to say.
The scurry among employees appears to have been spurred by the company’s software update. “As part of a companywide security and data compliance update, Vice last week disabled a tool called Google Takeout which previously allowed employees to download their Google data in bulk,” according to a person with knowledge of the business. “This system change is in no way tied to other business decisions at the company.”
Vice Media filed for bankruptcy in May of last year, canceled its flagship show Vice News Tonight weeks prior, and promised cost cuts and layoffs during the restructuring. Last July, Vice agreed to sell itself to a group led by Fortress Investment LLC, Soros Fund Management, and Monroe Capital, capping a lengthy sales process.