Vimeo Undergoes Significant Layoffs Following Acquisition by Bending Spoons
Vimeo, the renowned video-hosting platform established in 2004, has initiated substantial layoffs across its global workforce. This development follows its recent acquisition by the Italian tech conglomerate Bending Spoons in a $1.38 billion all-cash deal.
Bending Spoons has confirmed the layoffs but has not disclosed the exact number of employees affected. Reports suggest that a significant portion of Vimeo’s staff has been impacted. For instance, the former Vice President of Global Brand and Creative at Vimeo mentioned on LinkedIn that he, along with many colleagues, were part of the layoffs.
Vimeo has faced challenges in carving out a niche in a market dominated by platforms like YouTube. In an effort to differentiate itself, the company has invested heavily in artificial intelligence. In 2023, Vimeo announced plans to introduce AI-driven script-writing and video-editing tools. By October of the same year, it expanded its offerings with additional AI-powered creator tools aimed at integrating filmmakers’ content directly into AI workflows.
Bending Spoons has a history of acquiring and restructuring tech companies. In 2022, it acquired Evernote and subsequently laid off 129 staff members. Similarly, after acquiring WeTransfer in July 2024, Bending Spoons planned to lay off 75% of its staff. These actions indicate a pattern of workforce reductions following acquisitions.
The recent layoffs at Vimeo raise questions about the future direction of the platform under Bending Spoons’ ownership. While the company has expressed intentions to invest in growth and innovation, the immediate workforce reductions suggest a strategic shift aimed at streamlining operations and achieving profitability.
As the tech industry continues to evolve, companies like Vimeo must adapt to changing market dynamics. The integration of AI technologies and the restructuring of operations may position Vimeo to better compete in the digital video landscape. However, the impact of these changes on the platform’s user base and overall market position remains to be seen.
