In a move that has sent shockwaves through the creator economy, Vimeo has initiated its third wave of layoffs, affecting a significant portion of its global workforce.
This latest round, announced on January 20, 2026, comes just months after the platform's $1.38 billion acquisition by Italian tech firm Bending Spoons, confirming long-held fears about the company's aggressive restructuring strategy.
As Bending Spoons shifts Vimeo's focus toward enterprise solutions, the platform's roots in supporting independent filmmakers and artists appear to be fading, marking the transformation of a once-vibrant creative hub into a streamlined corporate entity.
The Acquisition: A Billion-Dollar Deal with a Profit-First Mindset
Bending Spoons acquired Vimeo in an all-cash deal valued at $1.38 billion in September 2025, representing the Milan-based firm's largest purchase to date. The acquisition offered Vimeo shareholders $7.85 per share, a 63% premium over recent trading prices, and valued the company at 3.3 times its annual revenue and 40 times its profit. Bending Spoons, known as a "software surgeon," has a history of snapping up underperforming tech companies like Evernote, Meetup, StreamYard, and WeTransfer, then optimizing them for maximum profitability through cost reductions and operational overhauls.
The firm's playbook is clear: Target businesses with strong underlying assets but inefficiencies, implement aggressive layoffs (often 50-75% of staff), raise prices, and pivot toward high-margin enterprise segments. In Vimeo's case, this means emphasizing tools for businesses to create and manage videos, while deprioritizing free or low-cost plans that catered to individual creators. Prior to the deal, Vimeo had already undergone a 10% staff reduction in September 2025, setting the stage for further cuts.
The Layoffs: A Pattern of Deep Cuts
The January 2026 layoffs represent the third major round since Vimeo's spin-off from IAC in 2021, but the first under full Bending Spoons control. Reports indicate that a "vast majority" of Vimeo's staff was affected, with some sources alleging the elimination of the entire video team and significant reductions across global operations, including the complete shutdown of its Israeli offices by mid-2026.
Bending Spoons confirmed the layoffs but declined to provide specifics, citing privacy concerns for departing employees.
This follows a pattern seen in Bending Spoons' other acquisitions: After buying WeTransfer, it laid off 75% of staff; Evernote saw similar restructuring with price hikes and feature changes that alienated users. For Vimeo, the cuts are part of integrating the platform into Bending Spoons' portfolio, aiming for profit margins exceeding 50% by streamlining operations and focusing on enterprise clients. Industry experts note that these moves, while boosting short-term profits, risk eroding user trust and innovation.
Impact on the Creator Economy: From Indie Darling to Corporate Tool
Vimeo, founded in 2004 by filmmakers Jake Lodwick and Zach Klein, began as a platform for high-quality, ad-free video sharing, attracting independent creators, artists, and "artsy people" who valued its focus on creativity over commercialization.
It differentiated itself from YouTube by emphasizing professional tools and a community-driven ethos, hosting over 260 million videos and serving 300 million users by 2025. However, under Bending Spoons, the platform is pivoting sharply toward enterprise features, such as advanced analytics, collaboration tools, and integrations for business video production.
Concerns are mounting about the fate of Vimeo's vast video archive — spanning two decades of user-generated content — which could be at risk if the platform deprioritizes non-enterprise users. Social media reactions, including posts on X, highlight fears that Vimeo is "dead" for creators, with users migrating to alternatives like YouTube or specialized platforms.
The broader implications extend to the internet's creative landscape. As platforms like Vimeo consolidate under profit-driven owners, the space for niche, ad-free content shrinks, pushing creators toward monetization-heavy giants and potentially stifling innovation.
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A Warning for the Tech Industry
Bending Spoons' "effect" serves as a cautionary tale for tech acquisitions. While the firm has successfully turned around companies—boosting Evernote's profitability through AI integrations and price adjustments — it often comes at the expense of original teams and user bases. For Vimeo, the future lies in enterprise growth, but the loss of its creative soul may alienate the very community that built its reputation.
As one era closes, creators must adapt, seeking new homes for their work. Vimeo, once a beacon for indie video, now stands as a corporate monolith—profitable, perhaps, but profoundly changed.
