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Vice Media announces hundreds of layoffs

By Nithya Bose in Business News, posted February 23, 2024

Vice Media is planning to lay off hundreds of employees in its digital publishing sector.

CEO Bruce Dixon informed staff through a memo, marking another round of cuts for the once-expansive digital media entity.

Over the last five years, the company has faced continuous layoffs, losses, and bankruptcy.

Last year, the company emerged from bankruptcy under new ownership by a consortium led by Fortress Investment Group.

However, hopes for investment and growth have been dashed by plans for further cost-cutting measures to curb financial losses.

This strategic shift includes the cessation of publication on Vice.com and the potential sale of its women-focused division, Refinery29.

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Mr Dixon said: “As we navigate the ever-evolving business landscape, we need to adapt and best align our strategies to be more competitive in the long-term.”

Web traffic to news publishers declined as users shifted preferences towards platforms like TikTok and Instagram.

Vice's struggles predate these latest layoffs, with the company experiencing troubles achieving profitability and stability despite various efforts, including high-profile content deals.

The termination of a major deal last year further exacerbated financial strains, leading to bankruptcy and a continued search for profitability under the oversight of its new owners.

Founded as a punk magazine over twenty years ago, Vice's journey from a valuation peak of $5.7 billion to its current state reflects the broader volatility and downturn in the digital media market.

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