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Bending Spoons lay off more than 85% of Brightcove staff after acquisition

9 points by terminatorguy 2y ago

Almost the entirely of Brightcove staff was lay off today. That is more than 450 people.

deleted 2y ago
[deleted]
toomuchtodo 2y ago
Might reach out to TechCrunch and The Verge so they can get comment from BS.
NomDePlum 2y ago
Listened to a podcast with Bending Spoons recently, part of The Pragmatic Engineer series. They discuss their acquisition strategy and having heard it this action is not surprising. Their perspective on this was interesting and very honest, but entirely unsentimental.
- terminatorguy 2y ago
  Brightcove was not a "generic app" in financial troubles. It was a well established enterprise businesses to businesses company. They will not even be able to honor current contracts.
  - Throwaway12385 2y ago
    Well established is stretching it. Executive leadership was a joke (so much so that they were caught off guard with their own axing.) Anyone who did an iota of research would’ve known this was the outcome. Brightcove hasn’t grown in the whole time I’ve been here and it’s been rounds and rounds of layoffs prior to the acquisition.
  - ko2ccs 2y ago
    Brightcove has been coasting for a long time, either barely losing / gaining money or breaking even. For a long time the only two possible outcomes have been either the company dying or being sold, surprised it took this long
  - rob 2y ago
    So what would one do if they happen to be paying for Beacon right now (which imo is a mess switching between 'classic' and new versions)?
EdwardDiego 2y ago
Yeah, this is how Bending Spoons roll.
okcantaloupe 2y ago
Wow, I'm an insider and I didn't knew this number.
deleted 2y ago
[deleted]
Throwaway12385 2y ago
I’m an insider as well but it’s unclear how many people were impacted. Where is 85% coming from and if so, why wasn’t WARN or mini-WARNs triggered?
- okcantaloupe 2y ago
  I have the same question about the WARN
throwaway5837 2y ago
This isn't very accurate. Brightcove employs about 700 people, and about 300-350 people were laid off. So it's closer to 45%. I have this information first hand.
ko2ccs 2y ago
No WARN notice because severance was very generous. 1 month of pay per year worked (minimum of 4, maximum of 8 months) + 1 year healthcare coverage. Not many people know the actual number laid off, won't till next week
- okcantaloupe 2y ago
  I thought WARN was mandatory by law, no matter what
  - ko2ccs 2y ago
    It's loose at best, WARN has no teeth and paying at least 60 days severance is generally considered compliant. Employees made out WAY better the way it was executed by Bending Spoons. Last year Brightcove gave 2 weeks of pay when they did layoffs. I know many people that are thrilled
dikti 2y ago
Well, no wonder. There haven't been many updates since I played around with Brightcove five years ago.
jackaction770 2y ago
[dead]
danrayburn1 2y ago
As of Sept 30, 2024, Brightcove had 621 employees, the last number the company reported before being acquired. Bending Spoons declined to say how many employees have been let go since the acquisition. The numbers tell the story. Brightcove's revenue declined over the past four years: - 2024 $197.7M - $198.7M (projected full year revenue given out during Q3 earnings) - 2023 $201.1M - 2022 $211.1M - 2021 $211.09M While Brightcove projected a non-GAAP loss from operations of $0.1M—$1.1M for 2024, at the end of Q3 2024, the company had $27M in cash and cash equivalents. That's insufficient cash to fund any acquisitions that would have the ability to grow topline revenue quickly. The only reason the number was in the 20s was that Brightcove got $6M in Q2 2024 from selling off 30 of their 53 patents to Adeia, most of which came from Brightcove's acquisition of Unicorn Media. Some PE firms looked at Brightcove but passed, as the cost to run the software platform was too high. In Q3, Brightcove spent $8.7M on R&D (18% of operating expenses) and $9.2M in general and administration (19% of operating expenses). Sales and marketing cost $16.3 million. (33% of operating expenses) With Bending Spoons cutting out many of those costs, with a large percentage coming from layoffs and consolidating some R&D, marketing and sales, the company is maximizing the business for free cash flow. Brightcove had a minimum commitment of $6.6 million over two years for content delivery network services, hosting and other support services, another place Bending Spoons will cut costs. There are many variables regarding the WARN Act and what does or does not trigger it. Over 20 states (and municipal jurisdictions) have some type of mass layoff statute or regulation in effect.

Almost the entirely of Brightcove staff was lay off today. That is more than 450 people.

deleted 2y ago

[deleted]

toomuchtodo 2y ago

Might reach out to TechCrunch and The Verge so they can get comment from BS.

NomDePlum 2y ago

Listened to a podcast with Bending Spoons recently, part of The Pragmatic Engineer series. They discuss their acquisition strategy and having heard it this action is not surprising. Their perspective on this was interesting and very honest, but entirely unsentimental.

terminatorguy 2y ago
Brightcove was not a "generic app" in financial troubles. It was a well established enterprise businesses to businesses company. They will not even be able to honor current contracts.
- Throwaway12385 2y ago
  Well established is stretching it. Executive leadership was a joke (so much so that they were caught off guard with their own axing.) Anyone who did an iota of research would’ve known this was the outcome. Brightcove hasn’t grown in the whole time I’ve been here and it’s been rounds and rounds of layoffs prior to the acquisition.
- ko2ccs 2y ago
  Brightcove has been coasting for a long time, either barely losing / gaining money or breaking even. For a long time the only two possible outcomes have been either the company dying or being sold, surprised it took this long
- rob 2y ago
  So what would one do if they happen to be paying for Beacon right now (which imo is a mess switching between 'classic' and new versions)?

EdwardDiego 2y ago

Yeah, this is how Bending Spoons roll.

okcantaloupe 2y ago

Wow, I'm an insider and I didn't knew this number.

deleted 2y ago

[deleted]

Throwaway12385 2y ago

I’m an insider as well but it’s unclear how many people were impacted. Where is 85% coming from and if so, why wasn’t WARN or mini-WARNs triggered?

okcantaloupe 2y ago
I have the same question about the WARN

throwaway5837 2y ago

This isn't very accurate. Brightcove employs about 700 people, and about 300-350 people were laid off. So it's closer to 45%. I have this information first hand.

ko2ccs 2y ago

No WARN notice because severance was very generous. 1 month of pay per year worked (minimum of 4, maximum of 8 months) + 1 year healthcare coverage. Not many people know the actual number laid off, won't till next week

okcantaloupe 2y ago
I thought WARN was mandatory by law, no matter what
- ko2ccs 2y ago
  It's loose at best, WARN has no teeth and paying at least 60 days severance is generally considered compliant. Employees made out WAY better the way it was executed by Bending Spoons. Last year Brightcove gave 2 weeks of pay when they did layoffs. I know many people that are thrilled

dikti 2y ago

Well, no wonder. There haven't been many updates since I played around with Brightcove five years ago.

jackaction770 2y ago

[dead]

danrayburn1 2y ago

As of Sept 30, 2024, Brightcove had 621 employees, the last number the company reported before being acquired. Bending Spoons declined to say how many employees have been let go since the acquisition. The numbers tell the story. Brightcove's revenue declined over the past four years: - 2024 $197.7M - $198.7M (projected full year revenue given out during Q3 earnings) - 2023 $201.1M - 2022 $211.1M - 2021 $211.09M While Brightcove projected a non-GAAP loss from operations of $0.1M—$1.1M for 2024, at the end of Q3 2024, the company had $27M in cash and cash equivalents. That's insufficient cash to fund any acquisitions that would have the ability to grow topline revenue quickly. The only reason the number was in the 20s was that Brightcove got $6M in Q2 2024 from selling off 30 of their 53 patents to Adeia, most of which came from Brightcove's acquisition of Unicorn Media. Some PE firms looked at Brightcove but passed, as the cost to run the software platform was too high. In Q3, Brightcove spent $8.7M on R&D (18% of operating expenses) and $9.2M in general and administration (19% of operating expenses). Sales and marketing cost $16.3 million. (33% of operating expenses) With Bending Spoons cutting out many of those costs, with a large percentage coming from layoffs and consolidating some R&D, marketing and sales, the company is maximizing the business for free cash flow. Brightcove had a minimum commitment of $6.6 million over two years for content delivery network services, hosting and other support services, another place Bending Spoons will cut costs. There are many variables regarding the WARN Act and what does or does not trigger it. Over 20 states (and municipal jurisdictions) have some type of mass layoff statute or regulation in effect.