Tencent Technology News, according to foreign media reports, Nancy Dubuc, CEO of Internet media company Vice Media, has set a 10% plan to lay off employees, resulting in a total of 250 jobs in all departments of the company.
The company is cutting jobs because it wants to cut costs as revenue growth slows.
Vice Media, based in Brooklyn, began hiring employees last fall and hopes to reduce the number of employees through attrition, thereby avoiding layoffs. As the reorganization progresses, Dubuquer will no longer focus on the company's network assets, but instead begin to increase its efforts in film, television production and brand content.
Dubuk wrote in a memo to employees on Friday: “After finalizing the 2019 budget, our focus shifted to implementing our plans and achieving our goals. We will enable the company to show itself the best and consolidate its position for a long time. ”
Vice Media is not the only company that feels it is difficult to achieve profit targets. Many digital media companies are now experiencing difficulties in achieving their growth goals.
Last week, news aggregator BuzzFeed announced that it would cut 15% of its employees, including the national news team that eliminated BuzzFeed News. Mobile operator Verizon fired 800 employees last month for Verizon Media Group (a new company after the merger of AOL and Yahoo), accounting for 7% of the total number of employees in the new company.
Dubuc said at the DealBook conference in the New York Times last fall that the company will be profitable again in the next fiscal year. The CEO pointed out that a few years ago, the company was profitable before it launched a major investment in the Viceland cable channel and international expansion.
When the layoffs were announced, the company's revenue in 2018 was basically the same as the previous year. The Wall Street Journal reported that in 2018, the company expects its revenue to be between $600 million and $650 million (same as 2017) and is expected to have a loss of $50 million.
In July 2017, the company cut about 2% of its employees in multiple departments (there were a total of 3,000 employees at the time). At the same time, it continues to expand internationally and strives to increase video production.
Dubuque is the former CEO of A+E Networks. Dubuck was appointed CEO of Vice Media after the company’s sexual harassment scandal led to the departure or dismissal of several executives. Co-founder Shane Smith turned to a new role —— executive chairman.
Vice Media said it will issue a five-week salary waiver to US laid-off workers and compensate for their accumulated paid vacation days.
Founded in 1994, Vice Media was originally a magazine in Montreal and has grown into a media group with multiple platforms.
In June 2017, the company received $450 million in investment from private equity firm TPG, and its valuation reached an astonishing $5.7 billion. But since then, its valuation has declined —— in September 2018, Disney reduced its share of Vice Media's shares by $157 million, which is evidence of this.