Italy-based app company Bending Spoons recently made the decision to lay off 75% of the staff at file transfer service WeTransfer, which it acquired in July. This move has raised concerns among employees and industry experts about the future of the Dutch company. The news of the layoffs was confirmed by Bending Spoons CEO Luca Ferrari, who stated that the decision was made in order to align WeTransfer with the company’s long-term vision.
Bending Spoons’ approach to acquiring companies involves a thorough examination of the organization to determine the best path forward. In the case of WeTransfer, the company aimed to create a smaller and more focused team that could better serve the needs of the file transfer service. While the decision to downsize may be unpopular, Ferrari emphasized that it is necessary to ensure the long-term success of the business.
Following the acquisition of WeTransfer, Bending Spoons introduced a new feature that allows users to extend the expiry date of links on the app. However, there has been limited information about the company’s long-term product roadmap. This lack of clarity has raised questions about the direction in which WeTransfer is headed, especially in light of the recent layoffs.
The layoffs at WeTransfer are not an isolated incident. Bending Spoons has a history of cutting staff at companies it acquires in order to streamline operations and increase profitability. In the past, the company has laid off employees at Evernote and Filmic, both of which it acquired in recent years. This pattern of downsizing has raised concerns about the impact on employee morale and the overall culture of the organizations.
Despite the layoffs, Bending Spoons remains financially stable, having recently raised $155 million in equity financing. The company’s ability to attract investment suggests that investors have confidence in its long-term strategy. However, concerns remain about the impact of the layoffs on WeTransfer’s ability to innovate and compete in the crowded file transfer market.
The layoffs at WeTransfer represent a significant shift in the company’s direction under Bending Spoons’ ownership. While the decision to downsize may be necessary for the company’s long-term success, it has raised questions about the future of the file transfer service. As WeTransfer moves forward, it will be essential for the company to communicate its vision and strategy clearly to employees and users in order to ensure its continued relevance in the app market.