Vice Media will stop publishing content on its website and lay off several hundred staffers as the beleaguered outlet makes “fundamental changes” to its “strategic vision” under its new private equity owner, Fortress Investment Group, chief executive Bruce Dixon announced Thursday in a memo to staff.
“This decision was not made lightly, and I understand the significant impact it will have on those affected,” Dixon told staffers in the memo, obtained by CNN, adding that employees impacted by the layoffs will be notified early next week.
Dixon said that Vice Media had determined it is “no longer cost-effective” for the company to distribute its digital content the way it has in the past. Instead, Dixon said that Vice Media will “look to partner with established media companies to distribute our digital content, including news, on their global platforms, as we fully transition to a studio model.”
“I know that saying goodbye to our valued colleagues is difficult and feels overwhelming, but this is the best path forward for Vice as we position the company for long-term creative and financial success,” Dixon added. “Our financial partners are supportive and have agreed to invest in this operating model going forward. We will emerge stronger and more resilient as we embark on this new phase of our journey.”
Vice Media, which was once a high-flying digital media outlet worth billions of dollars, has struggled immensely in recent years. The company was acquired by Fortress and two other creditors last year for a mere US$350 million.
