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Vimeo has laid off 6% of its workforce as the video hosting, sharing and services platform braces for an economic downturn.
"Our people are what makes Vimeo great, and losing any of them is a personal failure that I feel deeply. But after assessing the challenging market conditions and uncertainty ahead, I believe this is the responsible action to take," Vimeo CEO Anjali Sud said in a blog post on Monday. "It is the right thing to do, but still a painful outcome that impacts the jobs and lives of people we care about and have worked with side-by-side."
According to LinkedIn, Vimeo has a total of 1,447 employees. Sud said that the job cuts were focused on a "small number of structural areas" of the business.
Each departing Vimeo employee will receive a minimum of 12 weeks pay plus additional time depending on tenure; an extended timeframe to exercise their equity, COBRA health coverage for medical, dental and vision in the U.S.; mental wellbeing support and job transition support, including professional outplacement services; and a new alumni community called #Alumneo.
APPLE PLANS TO SLOW HIRING, SPENDING IN 2023: REPORT
The move comes as Vimeo has been "actively evaluating and shifting" its investments and expenses after already slowing down hiring at the start of the year and more recently.
"The reality is that the challenging economic conditions around us have impacted our business," Sud added. "We must assume that these conditions will remain challenged for the foreseeable future, and that we aren’t immune."
As of the end of the first quarter in March, Vimeo had approximately 1.7 million paying subscribers, with more than 8,000 paying sales-assisted customers.
In its latest monthly metrics, Vimeo reported year-over-year subscriber growth of 3% in June, continuing a downward trend from 4% in May and 5% in April. Meanwhile, Vimeo's total revenue grew 11% year over year in June, down from 16% in May and 19% in April. The company will report its full second-quarter earnings results on Aug. 4.
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In addition to Vimeo, Microsoft, Twitter, Netflix, Tesla, Coinbase and Robinhood have all reduced their workforces.
Meanwhile, tech companies that have said they would slow down or pause hiring include Apple, Google, Facebook parent Meta Platforms, Spotify and Uber.
|META||META PLATFORMS INC.||179.47||+3.69||+2.10%|
|SPOT||SPOTIFY TECHNOLOGY SA||113.31||+4.62||+4.25%|
|UBER||UBER TECHNOLOGIES INC.||23.68||+1.01||+4.46%|
Vimeo shares have fallen approximately 64% year to date.
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