Vimeo is doing another round of layoffs, this time affecting 11 percent of the company, CEO Anjali Sud announced in a letter posted online.
Citing “a further deterioration in economic conditions,” Sud told Vimeo staff that nearly every department and region of the company will see cuts. The majority of layoffs will occur in large departments like sales and research and development.
“We are entering 2023 with a more focused strategy to simplify Vimeo, and ultimately, our team size and composition needs to reflect that focus,” Sud wrote. “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.”
This round of job cuts follows earlier layoffs in July, when Sud announced Vimeo was laying off 6 percent of its workforce. Vimeo was far from alone: dozens of tech companies, from crypto exchanges to tech giants like Meta and Amazon, laid off workers in droves last year as the economy took a turn for the worse.
Those affected by the layoffs in July received at least 12 weeks of pay, COBRA health insurance, and “mental wellbeing support,” among other benefits, and Sud said the company would offer a similar package to newly laid-off employees. The company will hold a town hall tomorrow to discuss which parts of the business will be especially affected.
In recent years, Vimeo has tried to pivot and rebrand from its founding as an indie creator platform to a professionalized video software product for businesses. The shift has proved to be rocky, especially for longtime users who relied on Vimeo as a YouTube alternative. Last spring, creators said Vimeo hit them with significant subscription price hikes and threatened to remove their content if they didn’t pay up. Days after The Verge’s reporting, Sud issued a public apology and promised an overhaul of its bandwidth policy.