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Months after acquiring Evernote, Milan-based app developer Bending Sponse has made significant cuts to its note-taking and task management app.
The strike took place at Evernote on Friday, February 17, an Evernote spokesperson confirmed to TechCrunch, affecting 129 people.
“This was a difficult — but necessary — decision as we pursue our ambitious plans for Evernote,” a spokesperson told TechCrunch in an email. “The company has not been profitable for years and the situation is not sustainable in the long term.”
The spokesperson would not confirm which specific units were affected. But posts on LinkedIn and Blind suggest the layoffs affected several core Evernote teams, including product design, engineering, HR, sales, customer service and marketing.
Evernote has experienced ups and downs over the past few decades, with mass layoffs in 2015 and 2018 — a year that saw the exodus of top executives, including Evernote’s chief technical officer, chief financial officer, chief product officer and chief human resources officer. But the company seems to have more or less turned things around, reporting annual recurring revenue (ARR) of $100 million over the past five years.
Bending spoons, on the other hand, is not thought to adversely affect fluidity. The company recently closed a $340 million venture round and landed $100 million in ARR last September.
So what is the explanation for the cut? It can be as easy as Bending Spoons to prioritize Evernote for profit. Undoubtedly, the corporate parent will want to recoup its investment quickly, and will likely feel additional pressure from investors. (Turning spoons were installed relatively recently.)
But it’s true that Evernote wasn’t particularly competitive. Despite high ARRs reported, prior to the acquisition, the company was largely unable to keep up with competitors like Notion – relying on a consumer-focused freemium model and eschewing the collaborative features embraced by its rivals.
In any case, workers are unfortunate accidents in the situation.
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