(NEW YORK) — When it comes to marketing hooks, “Taco Tuesday” may be among the most well-known and successful tactics to entice diners with a delicious deal on a beloved Mexican food.
Now, California-based fast food giant Taco Bell has filed a new petition to do away with a trademark registration on the food-centric phrase.
“Tacos have the unique ability to bring people together and bring joy to their lives on an otherwise mediocre day of the week: Taco Tuesday. But since 1989, ‘Taco Tuesday’ has been registered as a trademark, creating potential legal consequences for those that want to use the phrase,” Taco Bell said in a press release on May 16.
Taco Bell’s petition, filed with the U.S. Patent and Trademark Office Trial and Appeal Board, asks U.S. regulators to force Wyoming-headquartered fast food chain Taco John’s to do away with its claim to the trademark.
“The essence of ‘Taco Tuesday’ is to celebrate the commonality amongst people of all walks of life who come together every week to celebrate something as simple, yet culturally phenomenal, as the taco,” Taco Bell wrote.
Taco Bell said it is not seeking damages or trademark rights of its own, stating it “simply seeks common sense for usage of a common term.”
The fast food chain stated in the filing that its entities “must be able to promote their goods and services using the generic, informational term ‘Taco Tuesday’ to compete effectively in the marketplace.”
In response to Taco Bell’s filing, Taco John’s announced a new two-week Taco Tuesday promotion on social media, offering two crispy or soft-shell beef tacos to those who download the Taco John’s app and join its Bigger Bolder Rewards program.
Taco John’s holds the trademark in the entire United States except for New Jersey. Taco Bell has also filed a similar petition against Gregory’s Restaurant and Bar in Somers Point, New Jersey, which holds the trademark rights in New Jersey and has also used the term “Taco Tuesday” for over 40 years.
Taco Bell, which is owned by Yum! Brands, has more than 7,200 locations globally. Taco John’s, which started as a food truck over 50 years ago, has nearly 370 restaurant locations across the Midwest.
(NEW YORK) — OpenAI CEO Sam Altman, whose company developed the widely used AI conversation program ChatGPT, warned federal lawmakers Tuesday that artificial intelligence could pose significant risks to the world if the technology goes wrong.
“We understand that people are anxious about how it could change the way we live. We are, too. But we believe that we can and must work together to identify and manage the potential downsides, so that we can all enjoy the tremendous upsides,” Altman told a Senate committee on tech and privacy.
Altman also acknowledged the risks in a March interview with ABC News’ Rebecca Jarvis, saying he was “a little bit scared” of the type of technology his own company is developing. Despite the dangers, Altman said AI can also be “the greatest technology humanity has yet developed.”
Start Here host Brad Mielke spoke to Gizmodo technology reporter Thomas Germain, who broke down Altman’s testimony, discussing the risks and potential challenges with proposing and implementing regulations on the technology.
BRAD MIELKE: Thomas, can you just help me break down what happened in this hearing?
THOMAS GERMAIN: Yeah, it was a little unusual. Sam Altman went in front of Congress and he said, basically begged them to protect the public from the technology that he is creating, which can seem a little weird if you take it at face value. One of the things that I think is interesting about this, it’s actually not unusual for the tech industry to ask to be regulated. That’s exactly what we’ve seen on privacy issues.
Some of the biggest proponents of privacy laws are Microsoft and Google and Meta, in fact, because it gives tech companies a huge advantage if there are laws that they can comply with. That way, if something goes wrong, they can just say, ‘Oh well, we were following the rules. It’s the government’s fault for not passing better regulation.’
It was an interesting hearing. And one of the things that was unusual about it was how friendly and positive everything was for the most part. You know, if you’ve seen any of the other hearings from other tech CEOs, they’re usually pretty combative. But Sam Altman managed to buddy up with all of these lawmakers, and they agree on some things, which is that AI should be regulated. But exactly how? No one really seems to know. And there were some very vague proposals thrown around. But it really seems like an open question, what AI regulation would even mean?
MIELKE: It felt like the Spider-Man meme, where everyone’s pointing at each other being like, “You, you, me?” Because this will sound like a dumb question, although maybe it’s not, since you just said that. What would you even regulate? When it comes to AI, what are the things that are even on the table right now?
GERMAIN: Yeah, that’s a really good question. And the fact that there’s no good answer says a lot about the state of the technology, right? We have no idea what this technology is capable of. I’ve spoken to people who are heading up companies that are at the forefront of building this technology. And if you ask them how far it’s going to go, they really have no idea.
We don’t know what the hard technical limits of these tools are. We don’t really know whether they can replace all of human labor like we’ve been told we’re supposed to be so afraid of. But there are a couple of things that Congress could do. I think the most important thing when it comes to AI regulation is transparency, right? The public, or at least regulators, need to know what data sets AI models are being trained on, because there can be baked in problems, right? If you train an AI on a data set that includes all of the internet, for example, you’re going to get a lot of racism and hate speech and other unpleasant things in there, and that’ll be spat back out.
MIELKE: Oh, because the way AI works is like, “Hey, use this model, use all these books to teach yourself how to talk, chat bot.” And yet, if you’re not using the right books or only a very narrow set of books, all of a sudden it’s trickier.
GERMAIN: Yeah, that’s one of the interesting things about this kind of technology, right? I think people have this image of computers that they’re really smart and they’re better than people. But really, it’s garbage in, garbage out. Whatever you feed in AI, it’s going to spit a similar thing back out. And we’ve seen that with other technologies, where they just repeat biases that are baked in.
Another big one is copyright issues. We really have no good answer whether an artist whose work goes into creating one of these models should be compensated or who owns the products of a tool like Chat GPT’s work. Congress really needs to answer that question and, if they don’t, the people who are going to answer it will be the Supreme Court. And our system is not designed for the court to be writing laws. That’s Congress’ job. So they really need to step up there.
And the last thing I think is picking out individual areas where there are particularly high risks. And this is what AI regulation proposals in the EU have been like. There are specific rules about issues like hiring decisions, banking, health care, the military, police, for example. How can and should cops be allowed to use this technology? That’s something we’ve seen with facial recognition. It’s gone totally off the rails.
MIELKE: I was about to ask for an example because it sounds like when you talk about hiring, it would be like sifting through all these resumes and figuring out who the best person is for your job. And yet, maybe you’re leaving out like a group of people that should not have been dismissed like that.
GERMAIN: That’s exactly right. Or maybe, you know, the person who designs the AI has a preference for male employees. So when the AI is going through and picking who the most qualified candidate is, it’ll end up doing that. I mean, then it’s not even about the person’s bias, right? If you look at the history of employment, men tend to be paid at higher rates and be more likely to be hired for particular kinds of jobs. If you train an AI on a data set of all the existing employees in the world, it’ll end up replicating the problems that already exist in our society.
MIELKE: So then, you say, here are some things that the government could regulate. Will they regulate it? Because I got to say, listening to the lawmakers here, and we’ve talked about before with like some of these old senators, it doesn’t sound like they’re particularly keen on getting involved in this.
GERMAIN: No, we’ve been talking about regulating privacy, for example, for the better part of a decade, and we’re no closer to a law today than we were a couple of years ago. And I think that speaks to a broader issue, which is a lot of the problems of AI are the problems of society. This technology could make the rich richer. It could make the poor poorer. It could replicate a lot of society’s worst impulses, from misinformation to discrimination, any number of issues. And Congress hasn’t addressed those problems as they stand today, let alone what technology will look like in the future. So in terms of regulating, I would start with the problems that we already have as opposed to some future hypothetical about what this tech will be like. Will Congress do that? I’m not hopeful. They don’t seem to be able to get anything done, let alone wrapping their minds around an entirely new technology.
MIELKE: As Congress is sort of like, would you like to take the lead on this? And the head of OpenAI is like, “No, no, I have a job.” All right, Thomas Germain from Gizmodo, thank you so much.
(NEW YORK) — Oscar Mayer is rolling into a new era, changing the name of its iconic Wienermobile to the “Frankmobile.”
The name change is the 27-foot-long hot dog vehicle’s first in nearly 100 years. Kraft Heinz, the parent company of the cold cut brand, said in a press release that the new name “pays homage to the brand’s 100% Beef Franks as it debuts a tasty new recipe that is more flavorful than ever.”
As new Oscar Mayer all-beef franks roll out to grocery retailers nationwide this month, the brand drew inspiration to update its fleet of six Frankmobiles.
The larger than life hot dog mobiles all have new features, from decals and rebranded “Frank Whistles” — previously called “Wiener Whistles” — to a newly renamed line-up of Hotdoggers behind the wheel, who will now be known as “Frankfurters.”
The Frankmobile will change only in name, continuing on “the vehicle’s mission to spark smiles and unite fans around a love of meat,” the company said.
As a bonus for anyone bearing the same name, the Frankmobile is offering “Franks for Franks,” meaning anyone who is named an iteration of “Frank” can stop by in person to get a coupon for a free pack of Oscar Mayer beef franks.
(WASHINGTON) — With time running short to address the debt ceiling or risk default ,President Joe Biden is cutting his upcoming foreign trip short amid the ongoing debt talks, a source familiar told ABC News Tuesday.
Biden is set to depart Wednesday to meet with G-7 leaders in Japan, but will now travel back Sunday and no longer visit Papua New Guinea or Australia.
Biden would have become the first sitting U.S. president to visit Papua New Guinea and was scheduled to join the Quad summit in Australia. House Speaker Kevin McCarthy and other Republicans had criticized Biden’s plans to go abroad as lawmakers face a possible June 1 default deadline.
White House spokesman John Kirby earlier Tuesday said they were “reevaluating” the trip but stressed Biden could handle both foreign and domestic priorities while away.
“He can travel overseas and manage our foreign policy and our defense policy and look after our national security commitments in an important region like the Indo-Pacific and also work with congressional leaders to do the right thing, raise the debt ceiling, avoid default so the United States credibility here at home and overseas is preserved,” Kirby said.
Negotiations on the debt ceiling resumed at 3 p.m. Tuesday when Biden, McCarthy, House Minority Leader Hakeem Jeffries, Senate Majority Leader Chuck Schumer and Senate Minority Leader Mitch McConnell met at the White House.
“We don’t have that much time left. We want to make sure we avoid a default but they’ve got to get serious and they haven’t been serious about any of these negotiations,” McCarthy told ABC News Senior Congressional Correspondent Rachel Scott on Tuesday ahead of the meeting.
Asked about Biden’s international trip, McCarthy said he believes “the American public wants to have an American president focused on American problems and solutions.”
Sen. John Cornyn, R-Texas, on Tuesday called on Biden to cancel his trip altogether.
“He can’t fly halfway around the globe just as negotiations are gaining momentum,” Cornyn said.
Biden’s schedule isn’t the only issue as the House is set to be out of town starting May 26 and will return on June 5, while the Senate will be away from May 22 to May 29, according to tentative schedules.
Adding pressure ahead of Tuesday’s debt ceiling summit, Treasury Secretary Janet Yellen said the economic shock that would result from an unprecedented default “could lead to a recession.”
“It’s essential Congress act as soon as possible,” she said as she delivered remarks in downtown Washington, stating they’re already seeing “the impacts of brinkmanship” and “default would generate an economic catastrophe.”
Yellen has repeatedly warned the U.S. could default in early June, possibly as soon as June 1, though the exact date remains uncertain.
Yellen wrote Monday in a letter to McCarthy the Treasury was already seeing adverse impacts on the economy as negotiations continue — including increased borrowing costs — and more harm could come if lawmakers wait until the final hour to strike a deal.
Schumer also laid out possible consequences of a default.
“If you want to own a home, default would take that dream and run it through the shredder. If you want to protect your 401(k), default would rob you of your livelihood,” Schumer said.
The so-called “Big Five” last met a week ago to talk debt ceiling, a meeting that ended with no movement toward a deal. Staff-level conversations have continued since then between the administration and congressional leaders.
Biden and Democrats have insisted Republicans take default off the table, and separate the debt ceiling from the 2024 budget. Republicans, on the other hand, have said they’ve done their job by passing the Limit, Save, Grow Act last month to raise the debt ceiling and enact deep spending cuts.
Possible areas of agreement on budget talks include clawing back billions of dollars in unspent COVID-19 relief and reforming the permitting process for energy projects, sources familiar with the talks told ABC News.
Schumer said Tuesday the fiscal talks “are separate but simultaneous to our responsibility to avoid default.”
“Democrats will not use the threat of default to get what we want,” Schumer said on the Senate floor. “Nobody should use default as a hostage.”
McConnell, meanwhile, said it’s up to Biden to “pretend the last election didn’t happen or sit down with the speaker and deal responsibly with out nation’s test.”
“Time is of the essence, of the essence. So for the second time, i’ll be glad to sit in at the white house to support speaker McCarthy and to urge President Biden to start operating in reality,” McConnell continued.
Biden said over the weekend he remained “optimistic” both sides be able to come to a solution.
“I really believe there is a desire on their part as well as ours to reach an agreement” he said during a bike ride in Delaware. “I think we’ll be able to do it.”
But McCarthy on Monday downplayed any signs of progress, telling ABC News both sides were “nowhere near coming to a conclusion.”
“I don’t think we’re in a good place,” McCarthy later said during a pro-police press conference. “I know we’re not.”
ABC News’ Allison Pecorin and John Parkinson contributed to this report.
Former CEO of Silicon Valley Bank Gregory Becker takes his seats as he arrives for a Senate Banking Committee hearing on Capitol Hill, May 16, 2023, in Washington, D.C. — Drew Angerer/Getty Images
(WASHINGTON) — Senators from both parties slammed former Silicon Valley Bank CEO Greg Becker at a hearing on Tuesday, accusing him of mismanagement that they say was fueled by short-term profits and the millions he stood to gain in compensation.
In a particularly heated exchange, Sen. John Kennedy, R-La., excoriated Becker over the bank’s failure to protect itself against the vulnerability of large holdings in Treasury and mortgage bonds.
As the Fed aggressively raised interest rates over the past year, the spike dropped the value of those bonds and punched a hole in the bank’s balance sheet.
“Mr. Becker, you made a really stupid bet that went bad,” Kennedy said. “You had all of your eggs in one basket.”
In response, Becker cited an “unprecedented” bank run driven by depositor panic on social media that spurred the withdrawal of about $42 billion in a matter of 10 hours.
“This wasn’t unprecedented,” Kennedy said. “Unless you were living on the International Space Station, you could see interest rates were rising and you weren’t hedged.”
In an effort to buffer against the possible decline in the value of a single asset type, banks often acquire other assets called hedges that they expect to perform well in such an environment and offset losses.
Kennedy accused Becker of foregoing the acquisition of hedges because such a move would have cost the bank money, cutting into its profits and reducing Becker’s performance-related compensation.
“If you’d made less money, that would’ve affected your bonus, wouldn’t it?” Kennedy asked Becker.
Becker responded: “Our compensation was predominantly long-term in nature.”
The collapse in March of Silicon Valley Bank, the nation’s 16th largest bank, set off a financial panic that led to the failure two days later of another major lender, Signature Bank.
The financial stress continues to weigh on the banking system. Late last month, regional lender First Republic Bank was seized and sold to JPMorgan Chase after a sudden downfall.
The Federal Reserve released a report last month that sharply criticized leadership at Silicon Valley Bank for “a textbook case of mismanagement,” but the report also faulted the Fed’s lax oversight and an inability to anticipate the systemic threat posed by the bank’s failure.
Michael Barr, the central bank’s vice chair for supervision, is set to testify before the Senate committee on Thursday.
“SVB’s board of directors and management failed to manage the bank’s risk,” Barr plans to tell senators, according to opening testimony filed with the committee. He also plans to fault Fed regulators for failing to adequately assess and respond to the risks posed by the bank.
While defending his management of Silicon Valley Bank, Becker apologized for the harm caused by the failure of the bank.
“I believe SVB had a positive impact on the roughly 100,000 companies we supported over multiple decades,” Becker said.
“The takeover of SVB has been personally and professionally devastating, and I am truly sorry for how this has impacted SVB’s employees, clients, and shareholders,” he added.
(WASHINGTON) — With time running short, President Joe Biden and congressional leaders will meet Tuesday afternoon to discuss the debt ceiling as Treasury Secretary Janet Yellen stressed a default could trigger a recession.
Biden, House Speaker Kevin McCarthy, House Minority Leader Hakeem Jeffries, Senate Majority Leader Chuck Schumer and Senate Minority Leader Mitch McConnell will meet at the White House at 3 p.m.
“We don’t have that much time left. We want to make sure we avoid a default but they’ve got to get serious and they haven’t been serious about any of these negotiations,” McCarthy told ABC News Senior Congressional Correspondent Rachel Scott on Tuesday.
Hours ahead of the summit, Yellen said the economic shock that would result from an unprecedented default “could lead to a recession.”
“It’s essential Congress act as soon as possible,” she said as she delivered remarks in downtown Washington, stating they’re already seeing “the impacts of brinkmanship” and “default would generate an economic catastrophe.”
Yellen has repeatedly warned the U.S. could default in early June, possibly as soon as June 1, though the exact date remains uncertain.
Yellen wrote Monday in a letter to McCarthy the Treasury was already seeing adverse impacts on the economy as negotiations continue — including increased borrowing costs — and more harm could come if lawmakers wait until the final hour to strike a deal.
Schumer also laid out possible consequences of a default.
“If you want to own a home, default would take that dream and run it through the shredder. If you want to protect your 401(k), default would rob you of your livelihood,” Schumer said.
Adding pressure to Tuesday’s debt ceiling sitdown is Biden’s upcoming trip abroad to meet with allies in Japan, Papua New Guinea and Australia. The president is set to depart Wednesday and is expected to be away for approximately a week.
McCarthy on Tuesday appeared to criticize Biden’s schedule, telling ABC he believes “the American public wants to have an American president focused on American problems and solutions.”
Biden said last week skipping the G-7 summit is “possible but not likely” based on debt ceiling negotiations.
“I’m still committed,” he said of the trip. “But obviously this is the single most important thing that is on the agenda.”
White House spokesperson John Kirby said Monday Biden was “still planning to leave as scheduled” for his Indo-Pacific trip.
Biden’s schedule isn’t the only issue as the House is set to be out of town starting May 26 and will return on June 5, while the Senate will be away from May 22 to May 29, according to tentative schedules.
The so-called “Big Five” last met a week ago to talk debt ceiling, a meeting that ended with no movement toward a deal. Staff-level conversations have continued since then between the administration and congressional leaders.
Biden and Democrats have insisted Republicans take default off the table, and separate the debt ceiling from the 2024 budget. Republicans, on the other hand, have said they’ve done their job by passing the Limit, Save, Grow Act last month to raise the debt ceiling and enact deep spending cuts.
Possible areas of agreement on budget talks include clawing back billions of dollars in unspent COVID-19 relief and reforming the permitting process for energy projects, sources familiar with the talks told ABC News.
Schumer said Tuesday the fiscal talks “are separate but simultaneous to our responsibility to avoid default.”
“Democrats will not use the threat of default to get what we want,” Schumer said on the Senate floor. “Nobody should use default as a hostage.”
McConnell, meanwhile, said it’s up to Biden to “pretend the last election didn’t happen or sit down with the speaker and deal responsibly with out nation’s test.”
“Time is of the essence, of the essence. So for the second time, i’ll be glad to sit in at the white house to support speaker McCarthy and to urge President Biden to start operating in reality,” McConnell continued.
Biden said over the weekend he remained “optimistic” both sides be able to come to a solution.
“I really believe there is a desire on their part as well as ours to reach an agreement” he said during a bike ride in Delaware. “I think we’ll be able to do it.”
But McCarthy on Monday downplayed any signs of progress, telling ABC News both sides were “nowhere near coming to a conclusion.”
“I don’t think we’re in a good place,” McCarthy later said during a pro-police press conference. “I know we’re not.”
ABC News’ John Parkinson contributed to this report.
(NEW YORK) — Billionaire Elon Musk blasted Jeffrey Epstein, who he referred to as a “dumb crook,” after he was subpoenaed as part of a lawsuit filed by the U.S. Virgin Islands against JPMorgan Chase & Co., which officials said “financially profited” from deposits made by Epstein.
In its filing, Virgin Islands officials say they attempted to serve Musk — one of the richest men in the world — with a subpoena. The subpoena appears to seek information about whether Epstein referred or attempted to refer Musk to JPMorgan, according to the Virgin Islands.
“This is idiotic on so many levels,” Musk tweeted Monday night. “1. That cretin never advised me on anything whatsoever. 2. The notion that I would need or listen to financial advice from a dumb crook is absurd. 3. JPM let Tesla down ten years ago, despite having Tesla’s global commercial banking business, which we then withdrew. I have never forgiven them.”
Musk was initially subpoenaed on April 28, but he couldn’t be reached, according to the filing.
The Virgin Islands has asserted the bank should have known about Epstein’s human trafficking and that the investigation it conducted into the matter yielded significant information about the bank’s dealings with Epstein.
“The Government’s investigation has revealed that JPMorgan knowingly, recklessly, and unlawfully provided and pulled the levers through which Epstein’s recruiters and victims were paid and was indispensable to the operation and concealment of the Epstein trafficking enterprise,” the Monday filing said. “Financial institutions can connect—or choke—human trafficking networks, and enforcement actions filed and injunctive relief obtained by attorneys general are essential to ensure that enterprises like Epstein’s cannot flourish in the future.”
The Virgin Islands also asserts that “JPMorgan financially profited from the deposits made by Epstein and Epstein- controlled entities located in the Virgin Islands and from the business opportunities referred to JPMorgan by Epstein and his co-conspirators in exchange for its known facilitation of and implicit participation in Epstein’s sex trafficking venture,” the government added.
Epstein died by suicide at the Metropolitan Correctional Center in Manhattan in August of 2019, the New York City’s medical examiner ruled.
JPMorgan has denied any wrongdoing and in March filed a civil complaint against its former executive Jes Staley, alleging he helped hide Epstein’s sex abuse so he would continue as a client. Staley, who left the bank in 2013, said in an April court filing that JPMorgan is attempting to used him as a “public relations shield” and the bank’s claims have no factual basis.
(NEW YORK) — Parents on TikTok are spreading the word about Target’s lenient return policy that applies to over 45 of their private label brands, including their children’s clothing line Cat & Jack.
TikTokker Sandra Puente shared a recent shopping trip to Target where she said she returned Cat & Jack items and ended up with about $150 to shop for her child again.
“Why didnt anyone tell me about this policy before,” Puente captioned a May 1 TikTok post.
Target extended their return policy back in 2015 and now lets customers who are not satisfied with any Target-owned brand items to make an exchange or get a refund within one year of purchase and with a receipt.
“This guarantee is in place because of the confidence we have in the quality of what we are offering when guests shop our owned brands,” a Target spokesperson told ABC News.
Hitha Herzog, the chief research analyst at H Squared Research, explained to ABC News’ Good Morning America that retailers like Target may adjust their item pricing in light of more generous return policies.
“What you are originally paying for, the product, that price takes into account the lenient return policy. So whether or not the returns come back gently worn or completely worn in and not wearable, the retailer will take into consideration with that through their pricing,” Herzog said.
Target isn’t the only store with relaxed return policies. Nordstrom famously has “no time limits for returns or exchanges” and the company handles returns “with the ultimate goal of making our customers happy.”
Grocery retailer Trader Joe’s also has a customer-friendly return policy that says, “We tried it. We like it. If you don’t, bring it back for a refund or exchange.”
“When you have a generous return policy, that means the customer will return. The more times a retailer can get that customer to come in, that has a significant impact on revenues going forward,” Herzog said.
Although Target’s return policy is lenient, some on social media are also questioning whether frequent returns are a misuse of Target’s return policy, especially if items have been used and the reason behind a return is solely because a child has outgrown a clothing item.
(NEW YORK) — Vice Media, the youth-oriented publisher of prominent online outlets such as Vice and Motherboard, filed for bankruptcy on Monday, underscoring the fraught economic environment for digital media companies as economic growth slows and the advertising market softens.
The group of sites, which includes food outlet Munchies and fashion news brand Refinery29, will continue publishing as the Chapter 11 bankruptcy process unfolds and the site takes on new ownership, Vice Media said in a statement.
The bankruptcy announcement will facilitate the sale of Vice Media to a group of its top lenders led by Fortress Investment Group and Soros Fund Management — which has agreed to an acquisition of the company that values it at about $225 million, the statement said.
“This accelerated court-supervised sale process will strengthen the Company and position VICE for long-term growth, thereby safeguarding the kind of authentic journalism and content creation that makes VICE such a trusted brand for young people and such a valued partner to brands, agencies and platforms,” Bruce Dixon and Hozefa Lokhandwala, Vice Media’s co-CEOs, said in a statement.
“We will have new ownership, a simplified capital structure and the ability to operate without the legacy liabilities that have been burdening our business. We look forward to completing the sale process in the next two to three months and charting a healthy and successful next chapter at VICE,” they added.
The move comes weeks after Vice Media canceled its flagship TV program, Vice News Tonight, indicating the depth of layoffs and cost cuts already underway.
A string of layoff and closure announcements in digital media has arrived in response to cooling ad revenue that has punished balance sheets.
Vox Media cut 7% of its staff in January and Bustle Digital Group — the parent company of online media outlets like Bustle and NYLON — followed a month later with layoffs that affected 8% of its workforce.
BuzzFeed News, a brand synonymous with the rise of online news coverage, shuttered less than a month ago.
Founded by Shane Smith, Suroosh Alvi and Gavin McInnes in Montreal in 1994, Vice Media rose from an edgy print magazine to a plucky online news brand to a youth culture media empire, ultimately garnering an investment of more than $400 million from Disney. In 2017, Vice was valued at $5.7 billion.
However, the company fell into financial trouble as it struggled to convert a large readership into reliable digital ad sales, finding cold comfort in a volatile ad market where social media platforms reaped much of the revenue.
Vice Union, a labor organization that represents more than 320 employees at the company, said on Monday that it “stands strong in supporting our members through stressful and uncertain times — and is more than ready to fight tenaciously for our rights.”
“Regardless of who owns the company,” the union added.
