Evernote, the once popular note-making service, which at one time was included in the list of “unicorns” – startups from with a capitalization of more than $1 billion, announced significant layoffs as it prepares to move its operations from the US to Europe, reports SFGate. The company has been based in Redwood City, California for the past decade, but declining demand for its core product, an online note-taking service and mobile apps, led to the sale of Evernote to Italian firm Bending Spoons last November.

As part of the transition, Evernote has laid off most of its employees in the US and Chile, according to a statement from Bending Spoons CEO Luca Ferrari. The company’s operations will be largely moved to Europe, which is a rather unexpected turn in Evernote’s history.

This round of layoffs follows a decision to lay off 129 employees less than six months ago, which was attributed to the company’s lack of profitability and an unsustainable long-term business model. Evernote, once a leader in the productivity services category, is struggling to maintain its position amid competition from new companies such as Notion, as well as advanced note-taking programs from tech giants Apple and Microsoft.

Despite these challenges, Bending Spoons has generated more than $100 million in annual revenue and raised $340 million in financing with the backing of Italian banking institutions and Maximum Effort, a firm owned by renowned actor Ryan Reynolds. However, the company did not disclose any information regarding Evernote’s profitability.

The exact number of workers affected by the layoffs remains unknown. However, LinkedIn posts from affected employees indicate that they included engineering and IT employees.

Despite the layoffs, Ferrari remains optimistic about Evernote’s future, saying a growing team based in Europe will continue to manage the service’s products. This team will also leverage the expertise of Bending Spoons’ more than 400 employees, many of whom have been working on Evernote full-time since the company’s acquisition.