Vimeo, one of the world’s leading video streaming services that competes head to head with YouTube, is having financial issues just like many other businesses these days, As a result, the company is laying off about 70 people – 6% of its workforce – including as many as 10 workers located in Israel.
The Vimeo Israel team handles research and development and it is comprised of people who worked for the Israeli startup Wibbitz that Vimeo acquired for $100 million.
Founded in 2004 by two Jewish entrepreneurs Zach Klein Jake Lodwick, Vimeo calls itself the world’s leading all-in-one video software solution. The company boasts that its platform enables any professional, team, and organization to unlock the power of video to create, collaborate and communicate. Vimeo serves a growing community of over 260 million users — from creatives to entrepreneurs to the world’s largest companies.
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It’s a sign of the times. Many native Israeli companies are also laying off people. Zencity, an Israeli startup that offers a community insights and analytics platform for state and local governments, has laid off 20% of its workforce, or 30 people. Two Israeli unicorns were also forced to fire people so far in the month of July, Lightricks and Next Insurance. This trend is largely attributed to the current global inflation crisis and the steps being taken to curb it. The U.S. and Israel have both raised interest rates. That move means there will be less money for future investments so companies of all kinds are contracting, if only temporarily.
“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. “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.”