The Latest Media Group to Cut Jobs Amid Declining Revenues in the Digital Age
Vice Media, known for its edgy content targeting millennials and Gen Z, has declared it will halt the production of new content on its primary website and initiate layoffs affecting several hundred employees, marking another setback for the beleaguered media sector.
In May, Vice filed for bankruptcy and was subsequently acquired by New York-based Fortress Investment Group for $350 million.
ost-cutting measures, including several rounds of job cuts and the cancellation of its popular Vice News Tonight programme, failed to reverse its fortunes, which reflected the broader struggles of news outlets in the digital era.
Vice will cease to publish content on Vice.com and move to partnering with other media companies, Vice Media Group CEO Bruce Dixon said in a memo that was widely shared online.
“With this strategic shift comes the need to realign our resources and streamline our overall operations at Vice,” Dixon said in his memo, adding that the company would switch to a “studio model.
“Regrettably, this means that we will be reducing our workforce, eliminating several hundred positions,” Dixon said.
Further details of the cuts are expected to be announced next week.
In January, the youth-focused brand announced that its music website Pitchfork Media would be rolled into GQ Magazine – killing off another staple of 2000s alternative culture.
Vice’s fall comes as traditional and digital media outlets alike are struggling to find a viable business model, with hundreds of jobs shed by the industry in the past year alone.
Vice’s rivals BuzzFeed News and Jezebel, which shared its strategy of combining irreverent and serious content, both shut down last year, while Vox Media and juggernaut publisher Condé Nast slashed jobs.
The trend of media struggles has persisted into 2024, with digital news startup The Messenger shutting down and layoffs announced at TechCrunch, the Washington Post, the Los Angeles Times, and the Wall Street Journal.
According to the Pew Research Center, newsroom employment in the United States plummeted by over a quarter between 2008 and 2021 as print advertising revenues diminished alongside the transition to digital content.
Originally founded as the Voice of Montreal in 1994 before rebranding upon its move to New York, Vice evolved from a print magazine into a sprawling multimedia company, offering original digital and video content, as well as several subsidiary channels. At the height of its success in 2017, the media group was valued at $5.7bn.
https://www.cnbc.com/2023/01/19/vice-media-restarts-sale-process-at-lower-valuation.html
