Evernote Makes Massive Layoffs in the US, Shifts Operations to Europe

Evernote Corp., a personal productivity app maker from the Web 2.0 era, has undergone significant changes after being acquired by Italian technology company Bending Spoons S.p.A. The company has laid off most of its staff in the United States and Chile and relocated the remaining employees to Italy.

Bending Spoons CEO Luca Ferrari stated that the move to centralize operations in Europe would lead to a substantial increase in operational efficiency. The exact number of employees affected by the closure of the Bay Area and Chile offices was not disclosed, but the company had previously laid off 129 employees earlier in the year, primarily in engineering and information technology roles.

Despite Evernote no longer being a market leader, Bending Spoons expressed ambitious plans for the company. A dedicated team based in Europe will assume ownership of the Evernote product, leveraging the expertise of Bending Spoons' workforce of over 400 employees.

Laid-off employees are being offered compensation packages that include salary, performance bonuses, health insurance, and visa support.

The acquisition and subsequent layoffs were not unexpected, as Evernote had faced challenges in remaining competitive in the market. The company, founded in 2000, had pioneered collaborative workspaces before the likes of Google Docs emerged. However, it struggled to maintain relevance and faced tough competition from companies like Microsoft and Google offering similar services for free. Evernote underwent a relaunch in 2015, but it failed to regain significant traction.

The acquisition by Bending Spoons came as a surprise considering the predictions of Evernote's demise in previous years. However, with Bending Spoons' substantial funding and resources, there is potential for a turnaround. Bending Spoons raised $340 million in November and an additional $77 million in March, providing a significant financial foundation for Evernote's future endeavors.