Vimeo’s Post-Acquisition Purge: Bending Spoons Axes Jobs in Israel and Beyond

by Liam Price

Vimeo faces global layoffs months after Bending Spoons' $1.38 billion acquisition, dismantling its Israeli development center and cutting staff worldwide. The moves follow a prior 10% reduction and signal aggressive cost-cutting by the new owner.

Vimeo’s Post-Acquisition Purge: Bending Spoons Axes Jobs in Israel and Beyond

Video platform Vimeo Inc. is slashing jobs across its operations just months after its $1.38 billion acquisition by Italian tech holding company Bending Spoons, marking the second round of layoffs since the deal closed. The cuts, which began hitting employees globally this week, signal a aggressive restructuring under new ownership known for rapid portfolio overhauls.

According to Business Insider , Vimeo is conducting a new round of global layoffs following its sale to Bending Spoons, a European firm with a track record of workforce reductions after takeovers. This follows a September 2025 cut of 10% of Vimeo’s full-time staff, before the acquisition finalized in November.

Israeli outlet Ctech reports that Vimeo is dismantling its development center in Israel, built through over $200 million in acquisitions including NaturalMotion and Guidde. The winding down comes after broad layoffs there, with the facility now effectively shuttered.

Bending Spoons’ Aggressive Playbook

Bending Spoons, founded in 2013, has built a portfolio of apps like Remini and Evernote through serial acquisitions followed by cost-cutting. The Vimeo deal, announced in September 2025 at $7.85 per share in cash, valued the company at about $1.38 billion, as detailed in Vimeo’s investor release . Post-close, Vimeo delisted from Nasdaq, per Investing.com .

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On X, user @daemon404 posted: ‘Tell HN: Bending Spoons laid off almost everybody at Vimeo yesterday,’ linking to Hacker News discussions that highlighted the Israeli office closure amid reports of war-related damage, though Ctech attributes it to strategic shifts. Bluesky user davidgerard noted Vimeo’s pivot away from creators, with bandwidth caps and copyright purges alienating its core users even before the sale.

Israeli Operations Dismantled

Ctech details how Vimeo assembled its Israeli hub via acquisitions: NaturalMotion for $527 million in 2014, later sold parts off, and more recent buys totaling over $200 million. Now, ‘Vimeo begins winding down its Israeli operations after broad layoffs,’ the publication states, with employees notified this week.

Hacker News threads, as referenced in X posts, speculate on Bending Spoons’ motives, comparing it to past moves like Evernote’s overhaul. Vimeo’s New York headquarters remains operational, but global staff are affected, per Business Insider.

Creator Backlash Builds

CineD criticizes Vimeo’s pre-sale shifts: ‘The real betrayal was copyright purges, bandwidth caps, and an enterprise pivot that drove away 96% of creators.’ This enterprise focus, accelerating under Bending Spoons, prioritizes business users over individual filmmakers who defined the platform.

TechCrunch’s coverage of the acquisition noted Bending Spoons’ interest dating to March 2024, positioning Vimeo as a video-centric addition to its empire. Yet, layoffs suggest integration challenges, with Digg reporting the cuts as Vimeo’s second since September.

Financial Pressures Mount

RockWater analysis pegs Vimeo’s valuation at modest revenue and EBITDA multiples post-deal, hinting at overpayment risks for Bending Spoons. Variety confirmed the all-cash terms, underscoring the Italian firm’s cash reserves from app successes.

Vimeo’s official X activity shows routine support responses amid the turmoil, with no direct acknowledgment of layoffs as of January 22, 2026. Employee sentiment on platforms like Hacker News reflects shock, with one thread titled ‘Tell HN: Bending Spoons laid off almost everybody at Vimeo yesterday.’

Strategic Restructuring Ahead

Newsinterpretation describes the layoffs as hitting ‘just months after $1.38 billion takeover,’ with Bending Spoons aiming to streamline for profitability. This mirrors patterns in prior acquisitions, where headcount drops enabled app monetization boosts.

For industry watchers, Vimeo’s fate tests Bending Spoons’ ability to revive a once-iconic platform now adrift from its roots. As cuts ripple through Tel Aviv to New York, questions linger on whether video pros will follow creators out the door.

Liam Price

Liam Price is a journalist who focuses on cloud infrastructure. Their approach combines long‑form narratives grounded in real‑world metrics. Readers appreciate their ability to connect strategic goals with everyday workflows. Their coverage includes guidance for teams under resource or time constraints. They emphasize responsible innovation and the constraints teams face when scaling products or services. They value transparent sourcing and prefer primary data when it is available. They write about both the promise and the cost of transformation, including risks that are easy to overlook. They maintain a balanced tone, separating speculation from evidence. They avoid buzzwords, focusing instead on outcomes, incentives, and the human side of technology. They explore how policies, markets, and infrastructure intersect to create second‑order effects. They look for overlooked details that differentiate sustainable success from short‑term wins. They believe good analysis should be specific, testable, and useful to practitioners. They tend to favor small experiments over sweeping predictions. They prefer evidence over hype and explain trade‑offs plainly.

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