Vimeo has pared back its workforce, laying off 11% of its global full-time employees, the video-hosting company disclosed.
The headcount reduction is “part of the company’s effort to focus on its top priorities, and to put itself in position to become sustainably profitable,” Vimeo said in an SEC filing Wednesday. It is expected that the implementation of the headcount reduction will be substantially complete by the end of the first quarter of 2023. Potential position eliminations in each country are subject to local law and consultation requirements.
In a memo to staff that the company posted online, Vimeo CEO Anjali Sud wrote that the latest round of layoffs “was a very hard decision that impacts each of us deeply.” Sud continued, “It is 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 Dec. 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 global recession fears,” Sud wrote in the memo.
New York-based Vimeo spun off from Barry Diller’s IAC internet conglomerate in 2021, when it became an independent publicly traded entity.
For the third quarter of 2022, Vimeo reported revenue of $108 million, up 8% year over year, while its net loss increased to $21.4 million (versus $11.7 million in the year-earlier period). As of Q3, Vimeo had 1.64 million subscribers — a 1% year-over-year decline — including 9,500 paying sales-assisted customers (up from more than 6,000 a year prior).