Vice to shut down website and sack hundreds of staff as free news model collapses

Move will see the company switch to selling its content to established media brands

Vice is to lay off hundreds of employees and shut down its website months after being bought out of bankruptcy.
In a memo to staff, chief executive Bruce Dixon said the media business would lay off “several hundred” staff members as it transitions to a “studio model”.
The overhaul means Vice will shut its own website and instead focus on selling articles and videos, including news, to established media brands.
Bosses said the company will also put more emphasis on social media in a bid to “take our content to where it will be viewed most broadly”.
Mr Dixon said: “We create and produce outstanding original content true to the Vice brand.
“However, it is no longer cost-effective for us to distribute our digital content the way we have done previously.”
The memo also stated that Vice was in advanced discussions to sell Refinery29, its media brand aimed at young women.
It marks the death-knell for the once buzzy youth focused website and another sad chapter in the decline of a media brand once valued at $5.7bn. 
Vice started life as a punk magazine in 1990s Montreal and became known for its coverage of drugs, sex and war zones. It captured attention with stunt journalism such as sending basketball player Dennis Rodman to North Korea and youth-focused content such as reviews of British nightclubs.
Vice grew rapidly in the 2010s, harnessing social media and platforms such as YouTube, and attracted investment from Rupert Murdoch and Disney.
However, much like rival online publishers such as BuzzFeed, Vice has struggled to navigate the downturn in digital advertising and the rise of new social media platforms such as TikTok.
The company has made sweeping job cuts in recent years as losses mounted and last year shut down its World News brand.
In May last year it collapsed into bankruptcy owing creditors as much as $1bn. It was bought out by a consortium of investors including George Soros and Fortress Investment Group.
At the time, executives said the rescue deal would “strengthen the company”. However, rather than safeguard jobs, Vice’s new owners appear to be effectively stripping it down to its brand.
Vice has previously inked deals with broadcasters and streaming services to distribute films and documentaries produced by its studio division.
In 2013 it launched VICE, a documentary series hosted by the media company’s colourful founder Shane Smith, on HBO. Other projects include Fyre: The Greatest Party That Never Happened on Netflix.
The media company also made the controversial decision to organise a music festival in Saudi Arabia in 2020, less than two years after it cut ties with the Gulf state following the murder of Jamal Khashoggi.
Vice also owns the Old Blue Last, a pub in Shoreditch known for live music.
In the memo, Mr Dixon said: “Our financial partners are supportive and have agreed to invest in this operating model going forward.”
Rumours that the website would be shut down sparked panic among Vice journalists last night, many of whom feared they would lose years of work.
Senior editors reportedly told staff they had not been given any clarity on the situation by management.
Mr Dixon said employees impacted by layoffs will be informed early next week. He added: “This decision was not made lightly.”