Vice Media Cutting 2% of its Workforce
A popular digital media company known for producing content for young adults, Vice Media LLC, has announced that it will be laying off about 60 employees from its global workforce.
The layoffs equate to about two percent of Vice’s total workforce of 3,000. Various job functions will be hit by the job cuts, including sales, editorial, and corporate positions. Employees at a number of locations within the U.S., Canada, and Europe will be affected.
The layoffs come at the heels of Vice’s revamped business strategy, which includes producing scripted content, as well as global expansion.
Under its content strategy, the news company is working on producing original scripted video content. Vice Media has managed to raise funds for Vice Studios, a video-production arm that will focus on producing scripted entertainment programs for TV and mobile platforms.
At the same time, the company is investing in its global expansion. Vice has plans to expand its reach to 80 countries by the first quarter of 2018. In the next few months, the company will be opening offices at two locations—India and Dubai— and will be expanding in some countries where it already operates, such as Brazil.
The layoffs within its North American offices will allow the company to shore up funding for hiring staff at its other locations.
With these layoffs, Vice has joined a growing list of media companies that are cutting their workforces as they shift toward digital content, particularly video.
Last month, Vocativ, a technology-driven news platform that creates shareable content, laid off all of its editorial staff as it announced its transition into an all-video news platform. Vocative announced that it would shift toward creating videos, mini-series, and documentaries—instead of sticking to written news articles.
Prior to that, Time Inc announced 300 layoffs as it shared its plans to scale back its print operations and invest in digital content production.
The media industry is increasingly evolving with technology. Consumers are inevitably absorbing more digital content, as smartphones and high-speed Internet become more accessible. Video content is becoming more lucrative for media companies because it generates higher advertising returns than does print media.
“Vice Media Laying Off 2% of Staff Amid International, Video Expansion (EXCLUSIVE),” Variety, July 21, 2017.
“Time Inc. Cuts 300 Jobs as Struggling Publisher Seeks Turnaround,” Bloomberg, June 13, 2017.