Evernote Layoffs: Is Evernote out of business?

Evernote Layoffs

After purchasing Evernote, Milan-based app developer Bending Spoons made significant changes to the task management and note-taking app. A spokesman for Evernote confirmed that 129 individuals were laid off on February 17.

“As we move forward with our ambitious objectives for Evernote, this was a painful but necessary choice”, the spokesperson said. “The company has been losing money for years, and the current situation is untenable.”

The representative declined to specify which particular departments were affected. The product design, engineering, HR, sales, customer service, and marketing departments were among the leading teams involved. This is according to posts on LinkedIn and Blind. Let us view the business in detail in this article.

Overview of Evernote

The technology firm Evernote Corp. (Evernote) creates software for desktops, tablets, and mobile devices. The business provides Evernote, a tool enabling users to write, collect, discuss, and present from the same workspace. Free personal, professional, and team versions of Evernote are all available.

Evernote’s Web Clipper is a tool for saving web pages with text, links, images, PDFs, articles, and other content for further research. The business also focuses on integrating software, including Gmail, MS Teams, Google Drive, Slack, and Zapier. It markets to both consumers and companies. The business operates in Switzerland, Japan, India, Chile, and China. The US city of Redwood City is where Evernote is based.

Evernote offers both free and paid account tiers, among other alternatives. The paid levels were known as personal and professional as of 2023. Plus, Premium and Business are the names of previous Evernote tiers. There is a cap of 100,000 notes for Evernote accounts that are free, personal, and professional. Individually paid customers may create up to 1,000 notebooks, while free users are limited to 250.

Evernote has been acquired

Evernote enjoyed its moment of glory. The California note-taking app benefited from the tech productivity boom of the 2000s to take the top spot in its industry. But after that, it started to lose favour, becoming slow and pricey. Users stopped using the platform and switched in large numbers to rival note-taking apps.

And it appears that more change is coming. On January 3, it was officially announced that Evernote had been sold to the Italian business Bending Spoons.

On the one hand, this can worry the users still using the system. Since Evernote won’t be a stand-alone business, its current course may undergo significant adjustments. 

Evernote will be added to Bending Spoons’ existing portfolio of software. Its lineup includes the AI picture-enhancing software Remini and the video editing software Splice. Ian Small, the CEO of Evernote, claims that the agreement will enable his company to utilize Bending Spoons’ “proven app experience and wide range of proprietary solutions.” This is to develop new features.

In a statement, Small said, “We are grateful to our consumers and workers and are delighted to team up with Bending Spoons. For fans of Evernote worldwide, this strategic sale implies that there will be significant, rapid upgrades.” These updates will be across their Teams, Professional, Personal, and Free services.

Bending Spoons laid off employees

The layoff happened months after purchasing the note-taking and task management service Evernote. The mobile application developer business Bending Spoons has fired 129 employees.

Evernote has experienced ups and downs over the years. This included considerable layoffs in 2015 and 2018. It was a year when senior executives like Evernote’s chief financial officer, product officer, and human resources officer left the firm.

According to the report, the company has turned things around. During the past five years, it has claimed $100 million in annual recurring revenue (ARR).

For its part, Bending Spoons wasn’t likely to be in severe financial straits. The business just completed a $340 million venture round, and in September of last year, it surpassed $100 million in ARR.

What, then, is the justification for the cuts? It might be as easy as bending spoons and setting Evernote up for success. The corporate parent undoubtedly wants a speedy return on its investment. It may also be under added pressure from investors.

Yet, it’s also true that Evernote didn’t have much rivalry. Before the acquisition, the company, despite having a high stated ARR, primarily fell behind rivals. It’s like the Notion app in that it relies on a freemium business model and avoids the kinds of collaboration capabilities that its competitors have adopted. In any event, employees are a tragic victim of the situation.

In the meantime, approximately 200 individuals, or around 11% of the cloud infrastructure company DigitalOcean staff, were let go.

“We intended to complete this once so things could resume as usual. We wish to decrease the disruption caused by ongoing reductions as much as possible for the business and, more significantly, our employees.” The company says this.

Employees at Evernote’s headquarters were let go!

Sixty-five workers at Evernote Corp.’s Redwood City headquarters have been laid off. According to a letter sent to state employment and municipal officials by the firm’s head of people, Sarah Odrezin, on February 17, the company terminated the work of its staff. According to Ozrezin, Evernote intended to provide the impacted employees 60 days’ pay and benefits in exchange for the mandatory notice.

“This act is expected to be permanent,” she said in the letter. “All concerned workers have been notified of the data provided above as of this date,” she added.

People employed by or reporting to managers stationed at 2400 Broadway, Suite 210. They are affected by the layoffs, according to Ozrezin. A senior data scientist, three senior directors of product marketing, marketing infrastructure, analytics, and data science, and 11 software engineers were among the staff members cut by Evernote. This is according to Ozrezin’s letter. This was made public by the state Employment Development Department.

The local layoffs were announced one day after the company fired 129 individuals on February 17. Besides San Diego, Texas, Washington State, China, India, Japan, and Switzerland, the app developer also maintains offices there. How much of the overall reduction would originate from those other areas took time to become apparent.

The Business Journal contacted Evernote representatives for comment. But they waited to respond. Evernote is one of the many Silicon Valley businesses that have announced layoffs in the past few months. After being acquired by rival Ouster Inc., San Jose-based lidar sensor manufacturer Velodyne Lidar Inc. laid off 221 people, including its CEO.

Conclusion

As one of the first note-taking programmes, Evernote gained popularity after its 2008 launch. Yet, the development of competing productivity applications like Notion has made it difficult for the programme to stay popular in recent years. In 2016, it also drew criticism for almost implementing a new privacy policy that would have permitted staff to view your content.

The company eventually reversed its policy. It rectified issues, such as the limitations on the free edition that permit two devices to access the app. These helped drive some customers away from the platform.  

Evernote’s upgrade to version 10 in 2020 has also drawn much criticism. It’s because the programme eliminated many functionalities. Several users noticed performance issues across devices, which Evernote still has trouble with today.

Evernote now has the chance for a fresh start with a new owner. We have to trust the Italian company, Bending Spoons. Also, the merger would draw on its experience to create a new Evernote. As we know, it already has a collection of consumer apps that are cutting-edge, potent, and user-friendly.

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