Coronavirus

Vice Media Laying Off 155 Employees

Nancy Dubuc
Michael Cohen/Getty Images for The New York Times

Nancy Dubuc, CEO of Vice Media, speaks onstage during the 2018 New York Times Dealbook on Nov. 1, 2018 in New York City.

Citing business challenges and a low return on investment from resources spent on producing content for digital platforms, Vice Media C.E.O. Nancy Dubuc announced plans on Friday morning for 155 employees to be laid off.

In a memo, Dubuc said that 55 staffers will be cut on Friday in the U.S. and that "approximately" 100 staffers will be cut abroad "over the coming weeks."

"I want you to know that we've done absolutely everything we could to protect these positions for as long as possible, and your time and contributions will forever be part of who we are and who we will become," Dubuc wrote in the memo, which was obtained by The Hollywood Reporter.

In February 2019, as part of a reorganization, the company cut 10 percent of its staff, or approximately 250 people.

In the memo, Dubuc told staffers that "tough decisions" had to be made about the company's digital teams, which she said account for 50 percent of Vice's headcount costs but only generate 21 percent of the company's revenue. But, she said the company was able to preserve 90 percent of digital roles.

"Looking at our business holistically, this imbalance needed to be addressed for the long-term health of our company," she wrote.

The global spread of the novel coronavirus pandemic has completely upended the digital media business model, resulting in layoffs or furloughs at almost every prominent company in the industry. On Thursday, the global business publication Quartz laid off 80 employees, representing 40 percent of its staff, and on Wednesday, magazine giant Conde Nast laid off 100 staffers in the U.S.

Vice Media had been expected to make deep cuts.

This article was originally published by The Hollywood Reporter.

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