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Vimeo Mass Layoffs: Private Equity Cuts Most Staff
Technology

Vimeo Mass Layoffs: Private Equity Cuts Most Staff

Engadget8h ago
3 min read
📋

Key Facts

  • ✓ Vimeo laid off most of its staff on January 20, 2026, just months after being acquired by private equity firm Bending Spoons.
  • ✓ The entire video team at the platform was reportedly impacted by the workforce reduction.
  • ✓ Bending Spoons purchased Vimeo for $1.38 billion in the latter half of 2025.
  • ✓ The private equity firm has a history of aggressive cost-cutting, having previously laid off staff at Evernote and WeTransfer.
  • ✓ Vimeo was founded a full year before YouTube and has long positioned itself as a premium alternative for creative video hosting.

In This Article

  1. Quick Summary
  2. The Layoff Announcement
  3. The New Ownership
  4. Corporate Response
  5. Industry Context
  6. Looking Ahead

Quick Summary#

Vimeo has executed a massive workforce reduction, laying off most of its employees just months after its acquisition by private equity. The layoffs, announced on January 20, 2026, have reportedly impacted the entire video team at the long-standing video-hosting platform.

The move comes as a shock to the industry, given Vimeo's position as a premium alternative for creative and business video hosting. The company was acquired by Bending Spoons for $1.38 billion in the latter half of 2025, setting the stage for this dramatic restructuring.

The Layoff Announcement#

The news broke through social media posts from affected employees and was later confirmed by the parent company. Former employees described the scale of the cuts as devastating for the platform's core operations.

Dave Brown, the former Vice President of Global Brand & Creative at Vimeo, shared his experience on a social platform. He stated, “Yesterday, following Vimeo’s recent acquisition by a private equity firm, I learned that I, along with a large portion of the company, was impacted by layoffs.”

The impact appears to be comprehensive. Another former employee, Derek Buitenhuis, provided a stark assessment of the situation:

Reviving this account to say: Almost everyone at Vimeo was laid off yesterday, including the entire video team.

This level of reduction raises immediate questions about the platform's ability to maintain its services and develop new features with a minimal staff.

"Yesterday, following Vimeo’s recent acquisition by a private equity firm, I learned that I, along with a large portion of the company, was impacted by layoffs."

— Dave Brown, Former Vice President of Global Brand & Creative

The New Ownership#

The layoffs are directly linked to the recent change in ownership. Bending Spoons, a private equity firm, finalized the acquisition of Vimeo in the second half of 2025 for a reported $1.38 billion.

The firm has a documented history of acquiring technology companies and implementing aggressive cost-cutting measures. This strategy was previously applied to other notable tech brands:

  • Evernote underwent significant layoffs in 2023
  • WeTransfer faced similar cuts in 2024
  • Vimeo is the latest target of this operational model

While the specific rationale for the Vimeo layoffs remains undisclosed, the pattern suggests a deliberate strategy to streamline operations and reduce overhead immediately following acquisition.

Corporate Response#

Despite the widespread cuts, Bending Spoons has issued a statement emphasizing its long-term commitment to the platform. A spokesperson for the firm confirmed the layoff announcement to a media outlet.

I can confirm that a layoff was announced at Vimeo on January 20, 2026. To respect the privacy of those departing, we cannot provide additional details at this time.

The statement continued with a forward-looking message that has drawn criticism given the scale of the workforce reduction:

Going forward, Bending Spoons remains committed to growing Vimeo to meet the needs of its diverse user base.

The disconnect between the promise of growth and the reality of firing nearly the entire staff has created skepticism among observers and former employees.

Industry Context#

Vimeo holds a unique place in the history of online video. The platform was founded a full year before YouTube, establishing itself early as a hub for creators and businesses seeking a more professional video hosting environment.

For years, Vimeo positioned itself as a premium alternative to mainstream platforms, focusing on high-quality video playback and a community of filmmakers. The removal of the entire video team calls into question how the platform will maintain these standards.

Former employee Derek Buitenhuis expressed a sentiment of loss regarding the platform's future under its new ownership structure:

Sucks to see something I built killed by private equity in a technology company skin suit.

With a minimal staff and no video team, the future trajectory of the once-innovative platform remains uncertain.

Looking Ahead#

The abrupt reduction of Vimeo's workforce marks a significant turning point for the video-hosting industry. The platform's ability to compete with larger entities like YouTube and Vimeo was built on a dedicated team of engineers and creatives, many of whom are now departing.

As Bending Spoons moves forward with its strategy, the tech community will be watching closely to see how the platform evolves. The acquisition of Vimeo for $1.38 billion represents a substantial investment, and the firm's aggressive cost-cutting measures will need to yield growth to justify the purchase price.

For the thousands of users who rely on Vimeo for hosting creative and business content, the coming months will reveal whether the platform can sustain its quality and innovation with a skeletal crew.

"Almost everyone at Vimeo was laid off yesterday, including the entire video team."

— Derek Buitenhuis, Former Employee

"Sucks to see something I built killed by private equity in a technology company skin suit."

— Derek Buitenhuis, Former Employee

"I can confirm that a layoff was announced at Vimeo on January 20, 2026. To respect the privacy of those departing, we cannot provide additional details at this time."

— Bending Spoons Spokesperson

"Going forward, Bending Spoons remains committed to growing Vimeo to meet the needs of its diverse user base."

— Bending Spoons Spokesperson
# Investment & Company Information # Finance # site|engadget # provider_name|Engadget # region|US # language|en-US # author_name|Lawrence Bonk

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