Vimeo has cut its workforce by laying off 11% of its full-time employees worldwide, the video-hosting company has revealed.
The headcount reduction is “part of the company’s efforts to focus on its highest priorities, and position itself to be sustainably profitable,” Vimeo said in an SEC filing on Wednesday. It is expected that the implementation of the headcount reduction will be substantially completed by the end of the first quarter of 2023. Potential location exclusions in each country are subject to local laws and consultation requirements.
In a memo to employees, Vimeo CEO Anjali Sood wrote that the latest round of layoffs was “a very difficult decision that deeply affects each of us.” “It’s also the right thing to do to enable Vimeo to become a more focused and successful company while operating with the discipline necessary in an uncertain economic environment,” continued Sud.
As of December 31, 2021, the company had 1,219 full-time employees. In July 2022, Vimeo laid off 6% of its employees, and since then Vimeo has seen “further deterioration in economic conditions in the form of prolonged geopolitical conflict, rising interest rates and fears of a global recession,” Sude wrote in the memo.
New York-based Vimeo spun out of Barry Diller’s IAC Internet conglomerate in 2021, when it became an independent publicly traded entity.
For the third quarter of 2022, Vimeo generated $108 million in revenue, up 8% year over year, while its net loss widened to $21.4 million (versus $11.7 million in the year-ago period). As of Q3, Vimeo had 1.64 million subscribers – a 1% year-over-year decline – including 9,500 paid sales-support subscribers (up from 6,000 a year ago).