Vice Media Group is undergoing significant layoffs due to economic challenges. In a memo to the staff on Thursday, CEO Bruce Dixon announced the organization would eliminate “several hundred” positions in the coming week.

During its extensive reorganization, Vice will stop posting content on its own platform, Vice.com.

“As we navigate the ever-evolving business landscape, we need to adapt and best align our strategies to be more competitive in the long term. After careful consideration and discussion with the board, we have decided to make some fundamental changes to our strategic vision at Vice,” Dixon wrote in the memo according to Variety.

“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,” he wrote. “Moving forward, we will look to partner with established media companies to distribute our digital content, including news, on their global platforms, as we fully transition to a studio model.”

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Dixon mentioned in his memo that Vice is “in advanced discussions” regarding the sale of Refinery29, a media company focusing on women that it acquired in 2019 in a deal reportedly worth $400 million.

“I know that saying goodbye to our valued colleagues is difficult and feels overwhelming, but this is the best path forward for Vice as we position the company for long-term creative and financial success,” the memo finished.

“Our financial partners are supportive and have agreed to invest in this operating model going forward. We will emerge stronger and more resilient as we embark on this new phase of our journey.”

Vice’s aggressive expansion into various content verticals and international markets contributed to a high valuation, peaking at $5.7 billion in 2017 following a $450 million investment from private equity firm TPG. This expansion included launching Vice News, a television network (Viceland), and various digital channels.

Despite its high valuation and significant investment, Vice struggled to become profitable. The company faced difficulties in generating revenue that matched its high valuation and investment levels. Advertising revenue, a crucial part of its business model, was not sufficient to cover the costs associated with its rapid expansion and the high production costs of its content.

In response to financial challenges, Vice underwent several rounds of layoffs and restructuring efforts. These moves were aimed at reducing costs and focusing on more profitable areas of the business. For example, in 2019, Vice laid off about 10% of its workforce as part of a restructuring effort to address financial issues.

Financial struggles also led to changes in Vice’s leadership. Co-founder Shane Smith stepped down as CEO in 2018, replaced by Nancy Dubuc, intending to steer the company toward profitability and stabilize its operations.

Vice has also dealt with significant debt, leading to speculation about the sale of the company or the need for additional investment to keep the company afloat. In recent years, there have been reports suggesting Vice was exploring options, including a sale or raising new funds to address its financial challenges.

The COVID-19 pandemic exacerbated Vice’s financial struggles, impacting advertising revenue and leading to additional layoffs and cost-cutting measures. The pandemic affected media companies globally, but Vice was particularly vulnerable due to its pre-existing financial challenges.