Vimeo is downsizing its workforce, firing 11% of its global full-time employees, the video hosting company has revealed.
Reducing staff “is part of the company’s efforts to focus on its top priorities, and position itself to generate sustainable profits,” he said. Vimeo said in the SEC filing Wednesday. The implementation of the staff reduction is expected to be largely completed by the end of the first quarter of 2023. Potential job removals in each country are subject to local law and consultation requirements.
In a note to employees, Vimeo CEO Anjali Sood wrote that the latest round of layoffs “has been a very difficult decision and it deeply affects each and every one of us.” Sood continued, “It’s also the right thing to do to enable Vimeo to be a more focused and successful company, operating with the necessary discipline in an uncertain economic environment.”
As of December 31, 2021, the company had 1,219 full-time employees. In July 2022, Vimeo laid off 6% of its staff and since then Vimeo has seen “a further deterioration in economic conditions, in the form of prolonged geopolitical conflict, rising interest rates and fears of a global recession,” Sud wrote in the note.
New York-based Vimeo spun off from Barry Diller’s Internet conglomerate IAC in 2021, when it became an independent, publicly traded entity.
In the third quarter of 2022, Vimeo reported revenue of $108 million, up 8% year-on-year, while its net loss increased to $21.4 million (compared to $11.7 million in the same period a year earlier). As of the third quarter, Vimeo had 1.64 million subscribers — down 1% year over year — including 9,500 sales-assisted paid customers (up from more than 6,000 a year earlier).
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