Mobile app developer Bending Spoons is expected to undertake massive layoffs in WeTransfer, a file transfer service it acquired earlier this year.
Multiple reports indicate that 75% of WeTransfer’s staff will be let go in the near future. It is estimated that WeTransfer currently employs around 350 people.
Bending Spoons’ CEO Luca Ferrari later confirmed the decision in a statement, although he didn’t specify the details of the layoffs.
According to Ferrari, this is part of the usual process of finding a vision for the company they acquire in order to make it more efficient and successful. The vision for WeTransfer is to have a small team that is better focused on the business at hand.
“In this particular case, the vision we developed is of a smaller, more sharply focused WeTransfer organization, which we believe will be better-positioned to serve WeTransfer’s success with a long-term view,” Ferrari added.
This isn’t the first time Bending Spoons has made a similar decision. Back in January, it acquired New York City-based mobile app developer Mosaic Group and proceeded to lay off the company’s entire team of 330 employees.
Founded in 2009, WeTransfer allows computer users to transfer computer files larger than 2GB. It has 80 million monthly active users and 600,000 subscribers. The company attempted to go public in 2022 with an initial valuation of $800 million but ended up halting the IPO process due to “market volatility.