Layoffs Hit Phil Libin’s Airtime Amid Industry Downturn
▼ Summary
– Airtime, a video startup founded by Evernote’s Phil Libin, laid off 25 employees from its 58-person team, calling it a “bigger than usual” change.
– Staff were surprised by the layoffs, as they were previously told no cuts were planned and expected the company to raise funds this year.
– Airtime operates on a “seasons” employment model, where employees are reassessed every six months, but recent layoffs deviated from the expected June 30 end date.
– The company cited a shift in focus as the reason for the layoffs, with insiders noting product struggles, high ad spend, and Libin’s reduced involvement in daily operations.
– Airtime has raised nearly $135 million in funding and made acquisitions like Memix and Macro, but has yet to make a significant AI push.
Airtime, the video collaboration startup founded by Evernote creator Phil Libin, has cut nearly half its workforce in a significant restructuring move. The company confirmed 25 employees were let go from its 58-person team, marking what it called an unusually large shift in its seasonal employment model.
Sources within the company revealed that many employees were caught off guard by the layoffs, having expected stability as Airtime reportedly planned to secure additional funding this year. The startup, originally launched as mmhmm during the pandemic, offers tools like Airtime Creator for dynamic presentations and Airtime Camera for customizable meeting appearances. Despite early traction, insiders suggest the product struggled with user retention while burning through substantial ad budgets.
Airtime adopted its unique “seasons” employment framework in late 2022, aiming to provide transparency by reassessing staffing needs every six months. Employees were typically notified well in advance if they wouldn’t be returning for the next cycle. However, this round of layoffs came earlier than expected, with affected staff given a June 6 departure date instead of the anticipated June 30 cutoff. While severance packages included six weeks of pay, some workers felt the timing undermined the system’s promised predictability.
Leadership reportedly finalized the cuts during lengthy discussions at Palo Alto’s Nobu restaurant. Managers were briefed the night before the June 3 company-wide announcement, and an undisclosed number of contractors were also released.
In a statement, Libin framed the layoffs as part of a strategic pivot, emphasizing that 33 employees were retained to focus on new products and partnerships. He reiterated that seasonal transitions naturally involve team adjustments, though this one was “bigger than usual” due to shifting priorities.
Airtime has raised $135 million in funding to date, using portions for acquisitions like filter-maker Memix and video effects startup Macro. Despite these investments, the company has yet to make a major AI push, even as competitors integrate advanced features.
The restructuring highlights broader challenges for startups navigating post-pandemic shifts in remote work tools. With user acquisition costs mounting and leadership reportedly distracted by Libin’s side ventures—including an Arkansas restaurant—Airtime’s latest cuts underscore the pressures facing niche collaboration platforms in a crowded market.
Image Credits: Airtime
Correction: An earlier version misstated Airtime’s total funding as $235 million. The correct figure is $135 million.
(Source: TechCrunch)
