Vimeo announces fresh layoffs, to fire 11% of its employees

Vimeo employed around 1,200 workers as of December 2021, according to its annual regulatory filing.

In an email to staff, Vimeo CEO Anjali Sud cited the “uncertain economic environment” for the layoffs.

She said employees would be notified via individual emails and an invitation to meet with their team leader and a member of human resources.

The fresh round of layoffs at the company comes after the company slashed 6% of its workforce in July. However, Sud, in a blogpost, said, “The company has seen a further deterioration in economic conditions, in the form of prolonged geopolitical conflict, rising interest rates, and global recession fears.”

“… We delivered against that commitment by achieving positive adjusted EBITDA and positive free cash flow in Q3 of 2022 — but as we’ve discussed, our bookings and revenue trends require ongoing cost discipline to maintain that trajectory going forward,” she said.

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Sud added that the company took action last quarter to streamline non-headcount costs, from marketing spends to perks to office space. However, the wage bill remains the largest cost for the company.
“We are entering 2023 with a more focused strategy to simplify Vimeo, and ultimately, our team size and composition needs to reflect that focus. This reduction enables us to achieve our growth and profitability goals in a way that is far less dependent on the broader market, putting us in full control of our destiny,” she said.

Launched in 2004, Vimeo claims to have over 260 million users, including big corporations, small businesses, organisations and content creators.

Pink slips across the landscape

Several other tech companies have announced layoffs over the last few months.

On Wednesday, e-commerce giant Amazon announced that it would lay off around 18,000 employees globally, starting January 18.

Amazon CEO Andy Jassy, in an email to staff, cited the “uncertain economy” and “rapid hiring” as reasons for the job cuts.

Meanwhile, Salesforce Inc has announced that it will lay off about 10% of its employees and close some offices as a part of a restructuring plan.

In November, the company reported its third-quarter earnings, showing a loss of about 100,000 subscribers from the previous quarter and an operating loss of $22.9 million.