Vimeo Faces Second Layoff Wave Under Bending Spoons Ownership
#Business

Vimeo Faces Second Layoff Wave Under Bending Spoons Ownership

Trends Reporter
2 min read

Video platform Vimeo has initiated another round of global layoffs months after being acquired by Italian tech holding company Bending Spoons for $1.38 billion, signaling continued turbulence following workforce reductions in 2025.

Featured image

Vimeo, the video hosting platform known for its professional creator tools, is undergoing its second significant workforce reduction since September 2025. This latest round of global layoffs comes just months after Italian tech conglomerate Bending Spoons acquired the company for approximately $1.38 billion in November 2025. The cuts follow Vimeo's previous elimination of 10% of its staff last September, raising questions about the platform's strategic direction under new ownership.

While exact figures haven't been disclosed, sources confirm this restructuring affects multiple departments globally. The timing suggests operational integration challenges common in tech acquisitions, particularly given Bending Spoons' reputation for aggressive cost optimization across its portfolio of productivity apps like Evernote and Remini. Historically, the Milan-based company implements rigorous efficiency measures post-acquisition, often streamlining overlapping functions between acquired entities.

Industry analysts observe that Vimeo's position in the competitive video platform market complicates this transition. Unlike YouTube's ad-supported model, Vimeo targets professional creators and businesses with subscription-based tools, facing pressure from alternatives like Wistia and Frame.io. The layoffs could indicate a pivot toward Bending Spoons' core strengths in product-led growth and automation, potentially reducing investments in enterprise sales or experimental features.

However, critics warn that repeated workforce reductions risk damaging creator trust and platform stability. Video professionals often choose Vimeo for its ad-free environment and reliable tools, and service disruptions or slowed innovation could accelerate customer migration. Employee morale presents another concern—double layoffs within months create uncertainty that hampers productivity and institutional knowledge retention.

Counterbalancing these risks, Bending Spoons may view consolidation as necessary for long-term viability. Vimeo's infrastructure and brand recognition offer significant value if integrated with Bending Spoons' AI and mobile technologies. Early signals suggest focus areas include automated video editing tools and tighter coupling with the parent company's app ecosystem, though such transitions rarely occur without workforce realignment.

The coming months will reveal whether these cuts represent temporary growing pains or fundamental repositioning. For now, Vimeo's trajectory highlights the tension between acquisition-driven scaling and sustainable operations in a crowded digital video landscape where user experience remains paramount.

Comments

Loading comments...