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Vimeo begins workforce reductions following bending spoons acquisition

Vimeo has started laying off employees across its global operations, marking one of the first major changes since its acquisition by Italian technology group Bending Spoons. The job cuts were first reported by Business Insider and come less than a year after Bending Spoons acquired the video-hosting platform in an all-cash deal valued at $1.38 billion.

While the exact number of affected employees has not been disclosed, Bending Spoons confirmed the layoffs, describing them as part of a broader restructuring effort. According to reporting by The Verge, the reductions are expected to impact a significant portion of Vimeo’s workforce. A former senior executive at Vimeo also indicated on LinkedIn that a “large portion of the company” had been affected by the move.

TechCrunch has reached out to both Vimeo and Bending Spoons seeking additional details, but neither company has provided further clarification at the time of writing.

Restructuring after Acquisition

Founded in 2004, Vimeo has long positioned itself as a premium video platform focused on professional creators and businesses. However, the company has struggled to compete at scale in a market dominated by YouTube and other large video platforms. Over the years, Vimeo has repeatedly adjusted its strategy to find sustainable growth and differentiate its offerings.

The acquisition by Bending Spoons was widely seen as a turning point for the company. Known for acquiring established digital platforms and streamlining their operations, Bending Spoons has previously taken over products such as Evernote, Meetup, and WeTransfer. The layoffs at Vimeo appear consistent with the acquirer’s broader approach of reshaping organizations to improve efficiency and profitability.

Increased Focus on AI Tools

In recent years, Vimeo has leaned heavily into artificial intelligence as part of its product roadmap. In 2023, the company announced plans to introduce AI-powered tools aimed at scriptwriting and video editing, targeting professional creators and enterprise customers. That strategy expanded further in October, when Vimeo launched additional AI-driven creator tools designed to integrate video content more directly into automated workflows.

Despite these efforts, Vimeo has faced ongoing pressure to scale its business and deliver consistent returns. The latest workforce reductions suggest a renewed focus on cost management and operational efficiency under new ownership.

As the restructuring unfolds, it remains unclear how the layoffs will affect Vimeo’s product development and long-term strategy. More details are expected as the company and its parent firm provide further updates in the coming weeks.