Italy-based app company Bending Spoons recently acquired the Dutch company WeTransfer in July. Following the acquisition, Bending Spoons has decided to lay off 75% of WeTransfer’s staff, according to a report by TechCrunch. This decision has sparked discussion and raised questions about the future of WeTransfer under its new ownership.
Bending Spoons CEO Luca Ferrari mentioned that the company typically studies the organization it acquires to determine the best vision for its future. In the case of WeTransfer, the vision developed by Bending Spoons is of a smaller, more focused team. This decision is aimed at positioning WeTransfer for long-term success. However, the layoffs have raised concerns about the impact on the remaining staff and the overall productivity of the company.
Since the acquisition, WeTransfer has introduced a new feature allowing users to extend the expiry date of a link on the app. Despite this development, there has been little information about the long-term product roadmap for WeTransfer under Bending Spoons’ ownership. The lack of transparency regarding future plans may cause uncertainty among users and investors.
History of Layoffs
The layoffs at WeTransfer are not an isolated incident. Bending Spoons has a history of cutting employee counts in companies it acquires to ensure profitability. Previous instances include cutting 129 employees from Evernote’s staff and letting go of the entire workforce of Filmic, a photo and video editing app acquired in 2022. This pattern of layoffs raises concerns about the company’s approach to managing its acquisitions.
In February, Bending Spoons secured $155 million in equity financing from investors, including Durable Capital Partners and existing ones. This financial backing suggests that the company has ambitious plans for growth and expansion. However, the recent layoffs at WeTransfer indicate a focus on cost-cutting measures rather than organic growth or innovation.
The layoffs at WeTransfer following its acquisition by Bending Spoons raise questions about the company’s strategy and vision for the future. While the decision to have a smaller, more focused team may lead to long-term success, it also raises concerns about the impact on employees and overall company culture. Transparency regarding product development and future plans is crucial for maintaining user trust and investor confidence.