After Acquisition, Italians Hand Out Layoffs In ‘Vimeo’
The popular video hosting platform ‘Vimeo’ has initiated a significant reduction of its global workforce just months after changing ownership. The Italian technology conglomerate Bending Spoons acquired the company late last year in a deal valued at approximately 1.38 billion dollars. While the new owners confirmed the layoffs took place, they declined to specify the exact number of employees affecting the payroll. Reports indicate that the cuts are sweeping and impact a vast majority of the staff across various departments. This move follows a pattern often seen when private equity firms take over established technology brands to restructure their operations.
Former executives and employees have taken to social media to share the grim news regarding their departures. Dave Brown, who served as the vice president for global brand and creative at ‘Vimeo’, revealed on LinkedIn that a large portion of the company was let go. His statement suggests that the reduction is not merely a trimming of excess roles but a fundamental gutting of the core team. Brown expressed his dismay at the situation while noting the extensive reach of these termination notices. The uncertainty surrounding the remaining structure of the company has left many in the tech community concerned about its future direction.
Engineers and technical staff appear to be among the hardest hit by these sudden changes. Derek Buitenhuis, a former senior engineer who spent over a decade with the platform, claimed that almost everyone was laid off including the entire video team. He voiced his frustration on social media by describing the event as seeing something he built destroyed by private equity. Buitenhuis used the metaphor of a “skin suit” to describe how the corporate entity is wearing the brand while hollowing out its substance. This sentiment reflects a broader anxiety among software professionals regarding aggressive acquisition strategies.
Bending Spoons has established a reputation for acquiring struggling or stagnant tech companies and aggressively cutting costs to improve profitability. The Milan-based company previously executed similar strategies after purchasing other well-known digital properties like ‘Evernote’ and ‘WeTransfer’. Their business model typically involves streamlining operations and shifting focus toward different revenue streams such as artificial intelligence tools. ‘Vimeo’ had already been pivoting toward AI-powered features for scriptwriting and editing before the buyout occurred. The new leadership seems intent on accelerating this transition at the expense of the legacy workforce.
The platform originally launched in 2004 and carved out a niche as a high-quality alternative to ‘YouTube’ for professional filmmakers. It struggled in recent years to maintain its relevance in a market dominated by larger competitors and social media video apps. These layoffs signal the end of an era for the service as a creator-focused community hub. The remaining team will likely focus on maintaining the technical infrastructure while implementing the new owners’ automated solutions.
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