Vice Media lays off 155 employees
Vice Media is laying off 155 employees, according to an internal memo from CEO Nancy Dubuc obtained by Axios. Vice's digital group will be the most heavily impacted by the cuts.
Why it matters: It's the latest media company that's been been forced to take drastic measures to survive the economic fallout of the coronavirus.
- "Currently, our digital organization accounts for around 50% of our headcount costs, but only brings in about 21% of our revenue," Dubac wrote. "Looking at our business holistically, this imbalance needed to be addressed for the long-term health of our company."
Details: The company will lay off 55 people in the U.S. today and approximately 100 colleagues globally over the coming weeks.
- It will provide severance pay to laid off workers and everyone impacted will be able to keep their work-issued laptops and receive outplacement services to aid in preparing for new job searches, Dubac said.
- Laid-off employees in the U.S. will receive extended health benefits coverage through the end of the year.
What's next: Vice is moving as many individuals as possible over to its news division, where traffic has been exploding during the coronavirus crisis.
The big picture: The pandemic is forcing dozens of major media companies, including newer, digitally-native media companies, to carry out layoffs and pay cuts.
- Vice joins Group Nine Media, BuzzFeed, Vox Media, Bustle Digital Group, Cheddar, Maven Media, G/O Media, Protocol and others who have resorted to layoffs and furloughs.
Go deeper: Digital media clobbered by coronavirus