Vice Media is planning to cut costs and has brought in consultancy AlixPartners to review the business and explore a potential sale of its studio arm, according to a Thursday report from The Information.
The media company plans to slow down hiring and cut other costs in order to generate $25 million in earnings before interest, taxes, depreciation and amortization, or EBIDTA, this year, the site reported, as the company projects revenue to increase to some $700 million this year, up from $680 million last year.
Vice is not the only media player to slash jobs and cut costs lately as advertising revenues take a hit. Last month, Snap warned that it is expecting to miss its second-quarter earnings due to macroeconomic conditions. And earlier this year, BuzzFeed said it would curb losses by cutting costs at its news division — cutting some 1.7% of its total staff impacting its editorial and administrative departments.
The studio arm of Vice, which currently accounts for one third of the company’s revenue, might be a target for sale to help reduce its debt.
The division includes Pulse Films, which produces “Gangs of London.” Last month, Vice hired LionTree and PJT Partners to look at the same of its studio business, according to the report. Vice also operates a news division that includes the brand Refinery29 and ad agency Virtue.
Vice has raised about $1.6 billion over eight funding rounds, according to Crunchbase. It was valued at $5.7 billion in 2017 following an investment from TPG, and it was previously reported that leadership would consider a sale of the company.