Italian software company Bending Spoons has announced plans to cut approximately 50% of Vimeo's workforce following its recent acquisition of the video platform. The layoffs, affecting hundreds of employees, continue a pattern that has become familiar in the tech industry's ongoing consolidation phase.

Bending Spoons' Acquisition Strategy

Bending Spoons has built its business model around acquiring struggling tech companies and aggressively cutting costs to restore profitability. The company, founded in Milan in 2013, has previously acquired Evernote, Meetup, and several other tech brands.

Their approach is straightforward but controversial: acquire companies at reduced valuations, eliminate what they consider redundant roles, and focus remaining resources on core product development and monetization.

"We focus on sustainable, profitable growth rather than growth at all costs. Sometimes that means making difficult decisions about headcount." - Bending Spoons Spokesperson

Impact on Vimeo

Vimeo, once valued at over $8 billion during its 2021 spinoff from IAC, has struggled to compete with YouTube and newer video platforms. The company had already conducted several rounds of layoffs before the Bending Spoons acquisition.

The cuts are expected to affect employees across all departments, though specific numbers by team have not been disclosed. According to sources familiar with the situation:

• Engineering: Significant reductions, with teams being consolidated
• Sales and Marketing: Major cuts as the company shifts to a more product-led growth model
• Customer Support: Transitioning to more AI-powered support solutions
• Content and Community: Entire teams being eliminated

What This Means for Vimeo Users

For the millions of creators and businesses that rely on Vimeo, the acquisition raises questions about the platform's future direction. Bending Spoons has indicated that it plans to:

1. Maintain core video hosting and streaming capabilities
2. Focus on profitable segments like enterprise video and event streaming
3. Potentially phase out features that don't generate significant revenue
4. Introduce AI-powered tools for video creation and editing

Users are advised to evaluate their dependency on specific Vimeo features, particularly those that might be considered non-essential by the new ownership.

The Broader Context

Vimeo's fate reflects broader challenges facing second-tier tech platforms in the current market environment. With interest rates higher than the zero-rate era that fueled tech growth, investors are demanding profitability over growth.

This has led to a wave of consolidation, with well-capitalized buyers like Bending Spoons, Vista Equity Partners, and Thoma Bravo acquiring struggling companies and implementing cost-cutting measures.

Employee Response

Former and current Vimeo employees have expressed frustration with the sudden nature of the cuts. Many learned about the layoffs through company-wide announcements with little warning.

Support networks have formed on LinkedIn and other platforms to help affected employees find new positions. Several tech companies have announced they're looking to hire Vimeo alumni, recognizing the talent available.

What's Next for Vimeo

Bending Spoons has a mixed track record with its acquisitions. While some products have stabilized and even grown under their ownership, others have faded into near-irrelevance. The company's approach tends to focus on:

• Aggressive cost optimization
• Premium pricing for committed users
• Minimal investment in free tiers
• Strategic feature development rather than broad expansion

For Vimeo, this likely means a smaller but potentially more sustainable business focused on serving paying customers rather than competing with YouTube for general video hosting.

Lessons for the Industry

The Vimeo situation offers several lessons for tech companies and employees:

For Companies: Growth at all costs is no longer a viable strategy. Sustainable business models with clear paths to profitability are essential, especially for companies that can't achieve market-leading positions.

For Employees: Company stability can change rapidly. Maintaining current skills, building professional networks, and having financial reserves are more important than ever.

For Users: Platform dependence carries risks. Understanding export options and having backup plans for critical services is prudent.

GetUpdated will continue to follow developments at Vimeo and provide updates on how the acquisition affects users and the broader video platform landscape.