Months after acquiring Evernote, Milan-based app developer Bending Spoons has made significant cuts at the note-taking and task management app. The layoffs, which took place on Friday, February 17, affected 129 people.
The Reason Behind the Cuts
According to an Evernote spokesperson, the decision was "difficult yet necessary" as the company pursues its ambitious plans for a revamped Evernote experience. The spokesperson stated that the company has been unprofitable for years and that the situation became unsustainable in the long term.
While the exact departments impacted by the layoffs remain unclear, posts on LinkedIn and Blind suggest that core teams, including product design, engineering, HR, sales, customer service, and marketing, were affected.
Evernote’s Turbulent Past
Evernote has had its share of ups and downs over the past few decades. The company underwent mass layoffs in 2015 and 2018, with top executives leaving their positions. However, Evernote seemed to turn things around more or less, reporting $100 million in annual recurring revenue (ARR) within the last five years.
Bending Spoons’ Investment
It’s unlikely that Bending Spoons, the corporate parent, was struggling financially. The company recently closed a $340 million venture round and surpassed $100 million in ARR last September. This suggests that the cuts might be part of Bending Spoons’ plan to prime Evernote for profitability.
Pressure from Investors
Bending Spoons was bootstrapped until relatively recently, but it’s possible that the company feels additional pressure from investors to show a quick return on its investment. No doubt, the corporate parent wants to ensure a successful outcome for its acquisition.
Evernote’s Competitiveness
Despite its reported high ARR, Evernote largely failed to keep pace with competitors like Notion. The company relied heavily on a consumer-focused freemium model while eschewing collaboration features that its rivals have adopted.
The Human Cost
Staffers are the unfortunate casualties of these circumstances. It remains to be seen how this move will impact the future of Evernote and Bending Spoons’ plans for the app.
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