Vimeo is undergoing sweeping layoffs following its acquisition by Milan-based app maker Bending Spoons, signaling a sharp pivot for the once-creator-centric video platform. While the service remains online, multiple posts from former employees describe broad cuts across teams, underscoring how dramatically the platform’s new owner plans to reshape operations.
What we know so far about the Vimeo layoffs
Bending Spoons confirmed to TechCrunch that it has reduced Vimeo’s workforce but declined to disclose the number of roles eliminated. Social media posts from former staffers paint a more severe picture: a longtime senior engineer said nearly the entire company, including the core video team, was let go, and a former VP of Global Brand and Creative wrote on LinkedIn that a large portion of the company was affected.
The layoffs arrive soon after ownership changed hands, a moment when buyers typically move quickly to reduce overlap, consolidate teams, and reset strategy. For Vimeo employees and customers, the speed and scope of the cuts suggest a deep operational integration rather than a light-touch investment.
A familiar playbook from Bending Spoons emerges
Bending Spoons has a track record of acquiring well-known digital brands and aggressively retooling them. After buying Evernote, the company shifted operations to Europe and laid off most staff in the U.S. and Chile, moves acknowledged by Evernote leadership and reported by multiple outlets. The firm also owns consumer hits like the AI photo enhancer Remini and the Splice video editor, products it has grown through rapid iteration, subscription pricing, and heavy cross-promotion.
Industry analysts describe Bending Spoons’ strategy as a blend of private-equity discipline and consumer-app DNA: buy underperforming or under-monetized assets, cut costs fast, centralize tech and go-to-market functions, and push a clearer paywall. Bloomberg has previously framed the company as a consolidator for the app-store era. That lens helps explain the abrupt headcount reductions now seen at Vimeo.
Impact on Vimeo’s product and customers post-sale
Vimeo’s core business—paid, ad-free video hosting and tools for creators and enterprises—continues to operate. But with the in-house video team reportedly gutted, the roadmap will likely shift. Expect closer alignment with Bending Spoons’ strengths: consumer-friendly editing, AI-assisted creation, and streamlined, subscription-first packaging. Vimeo had already begun leaning into AI with features like script generation and teleprompting; under new ownership, those bets may accelerate while non-core experiments wind down.
For paying customers, the near-term questions are practical:
- Will pricing change?
- Will support response times slow?
- Will encoding, live streaming, and CDN performance remain consistent?
Based on prior Bending Spoons integrations, price realignment and plan simplification are plausible, though reliability of the underlying video infrastructure—Vimeo’s brand promise for years—will be crucial to retain enterprise clients and long-standing creative communities.
Why the cuts now and what is driving the timing
Post-acquisition restructurings are common, but video is an especially cost-intensive category. Storage, transcoding, and bandwidth have real and rising costs, and profitability hinges on disciplined customer segmentation and efficient product development. Vimeo had already undergone multiple rounds of layoffs in prior years—double-digit % reductions that were disclosed in company memos at the time—as leadership sought a more sustainable cost base. The new owner is now compressing that journey, front-loading the savings and forcing sharper strategic focus.
The broader backdrop matters, too. With capital more expensive and ad markets uneven, software platforms that rely on infrastructure-heavy workflows face pressure to deliver consistent margins. Aligning Vimeo with a larger portfolio could unlock shared engineering, data, and growth channels—but it also increases the temptation to standardize offerings and sunset niche features beloved by power users.
What comes next for Vimeo under Bending Spoons ownership
Watch for three signals in the coming weeks:
- A refreshed pricing and plan matrix
- A public product roadmap emphasizing AI-augmented creation and simplified publishing
- Consolidation of support, billing, and account management under Bending Spoons’ systems
Any integration with portfolio apps like Splice or Remini would point to a strategy that blends Vimeo’s distribution strengths with consumer-grade creation tools.
For teams that rely on Vimeo, the immediate checklist is straightforward:
- Ensure backups of critical assets
- Review contract terms and renewal dates
- Evaluate contingency options for live events or mission-critical streaming
For creators and small businesses, the platform’s long-standing value—clean embeds, reliable playback, and ad-free control—still matters. The question is whether the new owner can preserve those strengths while reimagining Vimeo for a tougher market reality.
