An Italy-based app developer Bending Spoons said that it intends to dismiss 75 percent of the workers at WeTransfer, a popular file-sharing platform. This decision has been made as the Swiss start-up acquired the Dutch company earlier this year in July. Although details of the financial transaction of the acquisition are unknown, such massive layoffs have come as a surprise to many.
Bending Spoons, the same company which also develops infamous apps such as Evernote and Meetup, affirmed those sackings. However, the company still requires engaging with all the legal procedures, especially in the different states in which WeTransfer operates. Media wire sources indicate WeTransfer’s staff is over 350, implying that the decision eliminates about 75% of the whole team.
What Needs Such a Large Scale Cut?
According to some insight into the decision-making process by the CEO of Bending Spoons, Luca Ferrari, The company usually analyzes the target firm and attempts to understand how it could be managed with an eye toward the horizon. Ferrari added that the fact that nobody likes to terminate employees and that some decisions like layoffs are required in order to contribute to the success of a business.
The vision Bending Spoons came up with regarding WeTransfer is that the company should operate with a leaner team with a smaller number of people on board. As stated by Ferrari, this approach will also be beneficial for the long-term success of WeTransfer, thus helping the company become more flexible and more effective.
A Recent Trend in Bending Spoons Acquisition
The phenomenon of layoffs witnessed at WeTransfer is not the first of its kind. Bending Spoons has a tradition of reducing the management staff of the companies and buying it with the goal of optimizing their profit. In January 2016, it dismissed 129 people at Evernote, another giant in the well-stocked portfolio. The whole team at Filmic, an application for photo and video editing, was discharged in 2023. Meetup, the most famous event organizing service, also had problems after it was acquired by Bending Spoons: employees began getting laid off.
I believe that one must admit that Bending Spoons does not hesitate to make big shifts when it buys an organization. While some might look at this as rather severe, some others might look at it from the standpoint that it is a realistic way of ensuring that the business can run in the future.
What’s Next for WeTransfer?
Since its acquisition, WeTransfer has introduced a feature that enables users to adjust the time when a file link expires. Nonetheless, Bending Spoons and WeTransfer have not disclosed any information concerning the planning of the company’s products in the future. Cutting such a huge amount of a staff one can only wait for the changes that might appear in the nearest months.
Ferrari while discussing the future of WeTransfer discusses the idea that perhaps this company should work on simplification of the workflow. It is possible that a smaller number of employees will be more effective in paying attention to the essential aspects of the business and contribute to the overall success.
Opportunity of New Direction or a Year of Turmoil?
Speaking of WeTransfer, this is the start of a new journey for them. Although it is standard practice for some employees to lose their jobs following the acquisition of a company, firing 75% of its workers represents a major move. Whether Bending Spoon’s strategy will prove to be advantageous remains to be seen. Will WeTransfer become more successful with a smaller team?
Final Thoughts
Laying off WeTransfer employees by three-quarters to become leaner and profitable: This is the plan implemented by Bending Spoons for the company’s long-term financial health. Of course it is sad to see such a move happening to employees, but perhaps such a move could help the company to deliver better results.
