Vimeo to lay off 11% of workforce citing 'deterioration in economic conditions'
Majority of employees affected are in sales, research and development roles
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Vimeo said Wednesday that it will cut its workforce by 11% as part of a broader effort to reduce costs, citing deteriorating economic conditions.
Nearly every region and department at Vimeo will be affected, CEO Anjali Sud said in an email to staff. The majority of impacted employees work in sales as well as research and development roles, which make up the majority of its workforce, according to Sud.
Sud told staffers that the cuts were necessary to ensure Vimeo is successful and "operating with the necessary discipline in an uncertain economic environment."
"We are entering 2023 with a more focused strategy to simplify Vimeo, and ultimately, our team size and composition needs to reflect that focus," she said.
SALESFORCE TO LAY OFF 10% OF WORKFORCE TO CUT COSTS AMID ECONOMIC DOWNTURN
This illustration picture taken on July 24, 2019 in Paris shows the logo of the US video-sharing website Vimeo logo application on the screen of a tablet. ( MARTIN BUREAU/AFP via Getty Images / Getty Images)
The move will position the company to better achieve its "growth and profitability goals in a way that is far less dependent on the broader market, putting us in full control of our destiny," Sud added.
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The company already reduced its workforce by 6% in July. Since then, it's seen "a further deterioration in economic conditions, in the form of prolonged geopolitical conflict, rising interest rates, and global recession fears," Sud said.
Salesforce CEO Marc Benioff speaks during a news conference, in Indianapolis. ((AP Photo/Darron Cummings, File) / AP Newsroom)
In the previous quarter, the company streamlined its non-headcount costs, which includes marketing spending and office space. However, its workforce remains its largest cost, Sud said.
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The news comes just after Salesforce announced it will lay off 10% of its workforce to reduce costs and improve operating margins.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| VMEO | VIMEO | 6.71 | +0.02 | +0.30% |
Both companies join a growing list of major corporations in the tech industry – including Amazon, Apple, Meta, Lyft and Twitter – that are implementing layoffs and hiring freezes as fears that the economy may slip into a recession grow.