US video platform and solutions company Vimeo (Nasdaq: VMEO) CEO Anjali Sud has announced that it is cutting its workforce by 11%. Estimates are that Vimeo has 1,150 employees. This will be a second wave of layoffs after the company fired 70 employees in July 2022. Among those being laid off in Israel are design and creative staff in product development and marketing and several software programmers.
Sud wrote on LinkedIn, "This is a difficult decision that allows Vimeo to be a more focused and successful company, operating in a disciplined manner in an unstable global environment. This move will allow us to invest in our growth goals, become profitable and employ over a thousand employees who will bring the video message to every business in the world."
Vimeo held its IPO on Nasdaq in May 2021 and since then its share price has fallen 94%, although the share price has risen 13% in the past five days, giving a market cap of $598 million. Vimeo's Israel operations were initially based on the $100 million acquisition of video creation company Magisto in 2019.
In 2021, Vimeo acquired Israeli AI video startup Wibbitz, which developed a system for putting video clips on new websites. Financial details about the acquisition are not known. Former Wibbitz CEO Zohar Dayan was recently appointed Vimeo VP product, and he also remains Vimeo Israel general manager. According to Dayan's LinkedIn page, as of September 2022, Vimeo Israel had 130 employees in product development, engineering, creative design, business intelligence, support, human resources and finance.
Vimeo said, "Our office in Israel continues to be one of the company's leading centers for innovation and represents an integral part of the company's future."
Published by Globes, Israel business news - en.globes.co.il - on January 5, 2023.
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