Vimeo begins global layoffs following Bending Spoons acquisition

Video-hosting platform Vimeo is initiating layoffs affecting some of its global staff, according to a report from Business Insider. While the exact number of employees losing their jobs has not been disclosed, the workforce reductions are expected to be substantial. Reports from Business Insider first indicated that the company was cutting staff, a move that was subsequently confirmed by Vimeo’s parent company, Bending Spoons. A report from The Verge also states that the cutbacks will impact a large portion of the company’s total workforce. This scale was corroborated by a LinkedIn post from Vimeo’s former VP of Global Brand and Creative, who shared that he, “along with a large portion of the company,” had been “impacted by layoffs.”

The workforce reduction follows the acquisition of Vimeo by Bending Spoons, an Italian tech conglomerate. Bending Spoons purchased the video-hosting platform last year in an all-cash deal valued at $1.38 billion.

Since its founding in 2004, Vimeo has struggled to find its footing in a field dominated by YouTube. In recent years, the company has leaned heavily into AI. In 2023, Vimeo announced plans to launch AI-powered script-writing and video-editing tools. The company continued this transition this past October by adding a suite of additional AI-powered creator tools. These tools were designed to connect filmmakers’ “content directly to AI workflows.”

The move comes amid a broader acquisition trend for Bending Spoons. In recent years, the Italian tech conglomerate has acquired a number of other well-known tech platforms, including Meetup, Evernote, and WeTransfer.

Why it matters

Vimeo is undergoing a significant restructuring under its new owner, Bending Spoons, as it attempts to pivot its strategy in a market dominated by YouTube.