Vice Media announced plans to axe several hundred jobs and cease publishing on its website as part of a reorganization following its purchase by Fortress Investment Group. The move comes after the company filed for bankruptcy and as a response to the changing media landscape. Vice CEO Bruce Dixon has indicated that this decision will allow the company to partner with established media companies to distribute its digital content in a more cost-effective manner. The firm’s value, once reaching $5.7bn in 2017, has gradually decreased as revenues have remained stagnant and the company has struggled to make a profit.
Since its inception in 1994, Vice Media has operated in over 30 countries and its wide range of content, which was heralded as disrupting traditional media, included documentaries about the Islamic State and North Korea, as well as films about controversial figures and international politics. However, the company’s inability to attract younger audiences on social media platforms and the failure of plans to go public have led to financial difficulties. The decision to lay off hundreds of employees and restructure its approach to digital content distribution is a result of these struggles, as Vice Media aims to stay competitive in today’s media environment. It has said that further announcements will be made in the coming weeks as the company continues to sell the business and search for new opportunities.
