Italy-based app company Bending Spoons recently acquired the Dutch file transfer service WeTransfer in July, and the latest news reveals that they are planning to lay off 75% of the staff. This decision comes as a surprise to many, especially considering the size of the workforce at WeTransfer, which reportedly consists of over 350 employees. The CEO of Bending Spoons, Luca Ferrari, stated that the company’s approach to acquisitions involves reevaluating the organization and making necessary changes to align with their vision for the business. While these decisions may be difficult, they are made with the goal of ensuring the long-term success of the company.
Ferrari emphasized that Bending Spoons wanted to create a smaller and more focused team at WeTransfer, aiming to better position the company for future success. This strategic shift in vision suggests that the company is prioritizing efficiency and productivity over maintaining a large workforce. While this may be a rational business decision in terms of cost-cutting and streamlining operations, it raises concerns about the impact on employees who are facing potential layoffs.
Following the acquisition, WeTransfer introduced a new feature allowing users to extend the expiry date of links on the app. However, details about the long-term product roadmap have not been disclosed by Bending Spoons or WeTransfer. This lack of transparency regarding future plans could create uncertainty among employees and users alike. It remains to be seen how the company will navigate these changes and maintain its position in the competitive file transfer market.
The layoffs at WeTransfer are not an isolated incident, as Bending Spoons has a history of reducing employee counts following acquisitions. In the past, the company laid off a significant portion of Evernote’s staff and even let go of the entire workforce of Filmic, another app they acquired. This pattern raises questions about Bending Spoons’ approach to mergers and acquisitions and the impact on the employees of the companies they acquire.
Despite the layoffs, Bending Spoons secured $155 million in equity financing earlier this year from new and existing investors. This financial backing indicates confidence in the company’s growth potential and strategic direction. However, it also underscores the importance of balancing profitability with ethical considerations, particularly when it comes to workforce management and restructuring.
The layoffs at WeTransfer reflect a broader trend within Bending Spoons of reorganizing acquired companies to align with their vision and business objectives. While these decisions may be driven by strategic goals and financial considerations, they also have real implications for employees and users. As the company moves forward, it will be essential to communicate transparently, prioritize employee well-being, and ensure that its actions align with its stated values and long-term sustainability.