Home Technology Data Vimeo hit by global layoffs just months after $1.38 billion takeover

Vimeo hit by global layoffs just months after $1.38 billion takeover

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Vimeo has begun a new round of global layoffs, marking its second workforce reduction in less than six months, as its new owner, European technology firm Bending Spoons, continues restructuring efforts following its acquisition of the video platform.

Bending Spoons confirmed the job cuts this week, though it declined to disclose how many employees were affected or which regions were impacted. The layoffs come just a few months after the Milan-based company completed its purchase of Vimeo for approximately $1.38 billion in November, a deal that marked one of the most significant technology acquisitions of the year.

The latest cuts underscore the growing pressure across the global technology sector to reduce costs, streamline operations, and refocus product strategies amid economic uncertainty and rising operational expenses.

Second round of layoffs since September

This is Vimeo’s second round of layoffs since September, when the company reduced its full-time workforce by 10%. At that time, Vimeo said the cuts were part of an effort to “ensure focus and efficiency,” according to a filing with U.S. regulators.

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Employees affected by the latest round described the move as expected rather than shocking. One staff member who lost their job said the decision reflected a broader pattern that has emerged following ownership changes.

The company has not announced whether additional reductions are planned, but the timing suggests that Vimeo’s integration into Bending Spoons’ portfolio is still underway.

Bending Spoons’ acquisition strategy and restructuring pattern

Founded in Italy and headquartered in Milan, Bending Spoons has built a reputation for rapid growth through mergers and acquisitions. Its portfolio includes well-known digital platforms such as Evernote, Meetup, and WeTransfer.

In October, the company announced plans to acquire AOL for $1.5 billion, and in 2025 it raised $4 billion in debt financing to support that purchase and future acquisitions. The Vimeo deal closed in November, making it one of the company’s most prominent recent buys.

Bending Spoons has also developed a track record of deep post-acquisition restructuring. After acquiring WeTransfer, the firm laid off roughly 75% of its staff, citing the need to realign costs and operations. That history has drawn close attention from employees and industry observers following the Vimeo acquisition.

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While Bending Spoons has not publicly outlined its long-term plans for Vimeo, the layoffs suggest a push to consolidate teams, reduce overlapping roles, and prioritize profitability.

Vimeo’s long effort to stand apart from rivals

Vimeo was founded in 2004 and has spent two decades positioning itself as a premium alternative to mass-market video platforms. Unlike competitors that rely heavily on advertising, Vimeo has focused on paid subscriptions and professional tools aimed at businesses, creators, and organizations.

In recent years, the company expanded beyond basic video hosting into software services such as webinars, virtual events, and enterprise video solutions. That strategy was designed to diversify revenue and appeal to corporate customers rather than individual creators alone.

Vimeo was previously owned by media holding company IAC, which spun it off as a publicly traded company in May 2021. As an independent firm, Vimeo faced mounting competition, rising infrastructure costs, and pressure to deliver consistent profitability — challenges that became more acute as the broader tech market cooled.

Global tech layoffs continue into 2026

Vimeo’s workforce reductions are part of a wider pattern across the technology industry. Several major tech firms have announced layoffs, hiring freezes, or internal restructuring in recent months as they reassess growth strategies.

Companies including Meta and TikTok have cut staff as they reorganize teams, scale back certain business lines, or invest more heavily in automation and artificial intelligence. Some firms have slowed hiring in 2026 altogether, citing uncertainty around global economic conditions and the desire to improve efficiency.

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At the same time, AI tools are increasingly being used to replace or streamline roles in areas such as customer support, content moderation, and internal operations. While companies often describe these moves as necessary to remain competitive, they have also raised concerns about job stability across the sector.

What comes next for Vimeo

Neither Vimeo nor Bending Spoons has indicated whether the latest layoffs will significantly alter Vimeo’s product roadmap. However, industry analysts note that post-acquisition cost reductions are often followed by sharper strategic focus on a smaller set of core offerings.

For Vimeo, that could mean doubling down on enterprise video services, subscription-based tools, and professional clients while reducing investment in less profitable features. Whether that approach will strengthen Vimeo’s position in a crowded market remains an open question.

For employees, the layoffs reflect a reality increasingly common in global tech: ownership changes, even high-profile ones, often bring significant workforce disruption.

As Bending Spoons continues to expand its portfolio across Europe and the United States, Vimeo’s transformation may offer an early signal of how the company plans to manage and monetize the platforms it acquires.

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