Vice Media Group, the renowned digital media firm recognized for its youthful appeal and edgy content, stated on Thursday that it will no longer publish on its flagship website.
Along with this move, the corporation announced plans to eliminate other personnel, signaling a significant downsizing inside the organization.
Vice had emerged as a leader among the new wave of digital media firms, known for its millennial-focused approach and unique news and lifestyle products. However, the corporation experienced significant issues as advertising income declined in recent years.
This decision adds to a string of setbacks for the faltering American media industry, which included the closing of BuzzFeed News last year after more than a decade in business.
Bruce Dixon, Vice Media Group’s CEO, communicated this strategic move to workers via memo, emphasizing the need to realign resources and streamline operations. He stated that the current distribution strategy for digital content was no longer commercially viable.
As it transforms entirely to a studio model, Vice intends to engage with existing media firms to distribute its digital content, including news.
Employees affected by the restructure will receive notifications early next week, marking a dramatic shift for the once-dominant media behemoth. Vice fell sharply from its peak valuation of $5.7 billion six years ago, ending in a bankruptcy filing in May of last year. As a result, a consortium of creditors, led by Fortress Investment Group acquired the company for a fraction of its former value, at $350 million.
Vice’s troubles are symbolic of bigger issues confronting digital media firms, which frequently fail to convert brand enthusiasm into long-term revenue streams. Last year’s slump in internet advertising, along with tighter financial conditions, exacerbated the predicament for these organizations.
Vice began as a Canadian magazine in 1994 and has since grown into a multimedia conglomerate that includes news websites and television operations. Its controversial persona and ability to connect with youthful viewers garnered it enormous attention in the media environment. However, issues, including claims of workplace harassment in 2018, harmed its reputation, prompting co-founder Shane Smith’s resignation as CEO and the expulsion of numerous workers.
