Vimeo Faces Significant Layoffs Post-Acquisition by Bending Spoons

Vimeo, the video-hosting platform, is undergoing substantial layoffs shortly after its acquisition by the Italian tech conglomerate Bending Spoons for $1.38 billion. The layoffs, confirmed by Bending Spoons, are expected to affect a significant portion of Vimeo's global workforce, although the exact number of employees impacted has not been disclosed. Reports indicate that Vimeo's former VP of Global Brand and Creative, Dave Brown, noted in a LinkedIn post that he, along with many others, had been affected by the layoffs.

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Founded in 2004, Vimeo has faced challenges in a competitive landscape dominated by YouTube. In recent years, the company has attempted to pivot by investing in artificial intelligence (AI), launching AI-powered script-writing and video-editing tools. Despite these efforts, the company has struggled to maintain its market position, leading to the recent layoffs.

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Bending Spoons has a history of making acquisitions and subsequently implementing layoffs across its acquired companies, including WeTransfer, Filmic, and Evernote. This pattern raises concerns about the future of Vimeo's content and its operational stability. Reports suggest that the layoffs may include entire teams, with some former employees claiming that "almost everyone" at Vimeo was affected, particularly within the video engineering department.

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Bending Spoons spokesperson Camilla Bettinelli confirmed the layoffs but did not provide specific details on the number of employees affected. The company has faced scrutiny regarding its acquisition strategy and the subsequent impact on workforce stability. Vimeo's recent layoffs mark the second round of job cuts within six months, following a previous reduction of 10% of its workforce in September 2022, just before the acquisition announcement.

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Critics have expressed concern over the implications of these layoffs for Vimeo's content creators and the platform's overall viability. The layoffs have sparked discussions about the potential decline in content quality and availability, particularly for niche creators who rely on Vimeo for distribution. Former employees have voiced their worries about the future of the platform, emphasizing the adverse effects on the creative community.

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While multiple sources confirm the layoffs, there is inconsistency regarding the extent of the job cuts. Some reports suggest that "most" employees in certain regions, such as Israel, have been laid off, while others indicate that the layoffs affect a "large portion" of the workforce without specifying numbers. This discrepancy highlights a lack of clarity surrounding the full impact of the layoffs.

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• “a large portion of the company” — Dave Brown, Former VP of Global Brand and Creative, Vimeo

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• “including the entire video team.” — Anonymous former video engineer

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• “a gigantic amount of the company.” — Anonymous former software engineer

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The ongoing situation at Vimeo underscores the challenges faced by companies in the tech sector, particularly following acquisitions, and raises questions about the future direction of the platform under Bending Spoons' ownership.

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