Layoff ‘Season’ Hits Phil Libin’s Airtime: Dozens Let Go Amidst Shifting Focus
Airtime, the video startup founded by Evernote’s Phil Libin, has recently laid off a significant portion of its workforce. According to the company, 25 employees were let go from the 58-person team, a move described as “bigger than usual.” This marks another shift for the company, formerly known as mmhmm, which launched in 2020 amidst the pandemic-driven surge in video communication.
While Airtime frames these departures as part of its seasonal employment approach, sources within the company suggest that staff were taken by surprise. There was a prevailing understanding that the startup intended to raise funds this year, and prior assurances indicated no cuts were planned.
Airtime, which offers tools like Airtime Creator and Airtime Camera for enhancing online meetings, had adopted a “seasons”-focused employment structure in late 2022. This followed an earlier layoff of around 10%-15% of the staff. The intent was to avoid surprise firings, with the company deciding every six months who would be invited back for the next “season.”
However, recent layoffs have reportedly frustrated employees, as their “season” was expected to end in late June. Impacted employees were given an end date of June 6, with severance packages intended to cover at least part of what would have been offered had they been employed through the promised period.
Phil Libin stated that departure dates vary, with some employees staying longer to complete work and others leaving sooner. He affirmed that everyone is receiving six weeks of severance from their last day. Libin added that the bigger change is because Airtime’s focus changed more than usual and of 58 employees, the company asked 33 to come back next season to work on new products and partnerships.
Insiders suggest that Airtime’s product struggled to gain traction, experiencing churn, and user acquisition costs were high. Additionally, Libin’s focus was diverted to his restaurant in Arkansas.
Airtime has raised nearly $135 million in venture funding. Some funds were used for acquisitions, including Memix in 2020 and Macro in 2021. The acquisition of Macro was aimed at bringing in founders with product expertise. Airtime has not yet made a substantial push into AI, despite bringing in AI talent from Evernote.
Airtime stated that the larger cuts had to do with the company’s changing focus. In a statement attributed to Libin, Airtime says they have operated on a ‘seasonal’ structure since 2022.
