In a significant shift within the Australian media landscape, popular tech and culture news websites Vice, Gizmodo, Refinery29, Kotaku, and Lifehacker will cease their operations in Australia. This decision comes as part of a broader restructuring and cost-cutting initiative announced by the Pedestrian Group, owned by Nine Entertainment.

The restructuring will lead to dozens of job losses as Pedestrian Group shifts its focus towards its wholly owned brands, such as Pedestrian TV. The company's CEO, Matt Rowley, communicated this decision to staff via email, highlighting the need to prioritize control over strategy, content, product, sales, and overall business outcomes.

Rowley's email detailed the factors influencing the company's decision to end its use of brand licenses for Vice, Gizmodo, Refinery29, Kotaku, and Lifehacker. Despite the Pedestrian Group being described as a "highly successful business," Rowley pointed to several challenges faced by the license partners, including financial headwinds, corporate instability, a decline in the broader advertising market, and the increasing dominance of platforms like TikTok and Instagram.

“We’ve made the tough decision to focus on our wholly owned Pedestrian brands where we control the strategy, the content, the product, the sales, and the outcome – the entire business,” Rowley said. He acknowledged the impact this decision would have on roles within the group and assured staff that those affected would be contacted immediately.

The announcement has created uncertainty and disappointment among the staff. Kotaku Australia's managing editor, David Smith, expressed his sadness on social media, describing the experience of running Kotaku as one of the great joys of his life. Gizmodo Australia writer Zachariah Kelly also shared his frustration, having dedicated significant effort to building a strong coverage pillar for the site.

The restructuring will result in up to 40 job losses from Pedestrian Group's current staff of approximately 95 employees, with some potentially being redeployed within the company. These cuts come on top of the 90 job losses announced last month from Nine's publishing division.

Rowley also announced his departure from Nine Entertainment following the transition period, with a new CEO to be appointed to lead the Pedestrian Group.

The challenges faced by Pedestrian Group are reflective of broader economic pressures impacting the media industry. Nine Entertainment's CEO, Mike Sneesby, cited "economic headwinds" as a primary reason for the tough decisions being made to save the company $30 million. Sneesby's announcement has not been well received by staff, who passed a no-confidence motion against him in response.

Additionally, Nine.com.au's director, Kerri Elstub, informed staff that the company would not be filling several existing vacant roles in the video and news teams as part of its cost management strategy.

The shuttering of these local operations is part of a larger trend of international media brands withdrawing from the Australian market. In 2022, Red Ventures closed down local versions of tech sites ZDNet, CNET, and Gamespot. 

This trend underscores the challenges facing traditional media companies as they navigate a rapidly evolving digital landscape, characterized by changing consumer behaviors and the rise of new platforms.

The decision to cease publication of Vice, Gizmodo, Refinery29, Kotaku, and Lifehacker in Australia marks the end of an era for these influential brands in the local market. These sites have been significant sources of tech and culture news, resonating with diverse audiences across Australia. The restructuring by Pedestrian Group reflects a strategic pivot towards consolidating and strengthening its core brands amid challenging economic conditions.

While the immediate future is uncertain for the employees affected by these changes, the Pedestrian Group's decision to focus on wholly owned brands suggests a commitment to maintaining control and adaptability in a volatile market. As the media industry continues to evolve, companies like Pedestrian Group will need to navigate these challenges with strategic foresight and innovation to sustain their growth and relevance.